Why Aurora Cannabis, Aphria, Cronos Group, and Other Marijuana Stocks Crashed Today

Cannabis stocks plunged on Thursday as traders rushed to take profits in companies that analysts say have seen their share prices rise too far, too fast…

Here’s how some of the most popular marijuana stocks were performing as of 2:15 p.m. EST.

So what

Pot stocks have caught the attention of traders on Reddit and other social media sites in recent weeks. Spurred by their excitement about the possibility of federal marijuana legalization in the U.S. now that the Democrats control the Senate, the House of Representatives, and the White House, many traders in the 8.9 million-member WallStreetBets Reddit group have ramped up their bets on weed stocks.

Up until the market close on Wednesday, that optimism had been playing out well for investors. Many cannabis stocks had more than doubled since the beginning of the year.

APHA Chart

APHA DATA BY YCHARTS

Now what

However, analysts have been cautioning investors that in the wake of these torrid gains, the prices of many marijuana stocks no longer reflect the fundamental values of their underlying businesses. On Wednesday, many traders seemingly decided to…

Continue reading at THE MOTLEY FOOL

 

Leave a Reply

Your email address will not be published. Required fields are marked *