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Why Weed Stocks are NOT the Next GameStop

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Weed stocks have been rocketing in value this February, before crashing on Thursday. Reddit and the infamous /r/WallStreetBets forum got behind certain Canadian-based cannabis companies this last week (Canopy Growth Corp NASDAQ: CGC TSE: WEED and Aphria Inc NASDAQ: APHA  TSE: APHA most notably) spurring 100% plus gains. Many investors are now worried that the large runup and crash has now burst a bubble like GameStop Corp. NYSE: GME before it.

However, the cannabis story differs entirely. This recent dip could be more a case of the sector suffering from its own success.

There has been great momentum in the sector for good reason. Weed stocks have all been buoyed with expectations of U.S. federal decriminalization and interstate cannabis commerce.

Watch the entire interview for a full breakdown of the cannabis industry and its current trading patterns.

Original article: Why Weed Stocks are NOT the Next GameStop

©2021 Midas Letter. All Rights Reserved.


Source: http://midasletter.com/2021/02/why-weed-stocks-are-not-the-next-gamestop/


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