what happened
Cannabis stocks plunged Thursday as traders tried to fetch profits in companies that analysts saw as their stock prices rising too fast, too fast.
Here’s how some of the most popular marijuana stocks perform from 14:15 EST.
Approximately
Pot stocks have attracted the attention of merchants on Reddit and other social media sites over the past few weeks. As their excitement over the possibility of federal marijuana legalization in the US now that Democrats control the Senate, House of Representatives and White House, many traders in the Wall Street Street group of 8.9 million members have increased their bets on weeds . shares.
Shares of Aurora, Aphria, Cronos, Canopy and Hexo waived their recent gains on Wednesday. Image Source: Getty Images.
Until the market closed on Wednesday, optimism played well for investors. Many cannabis stocks have more than doubled since the beginning of the year.
APHA data by YCharts
Now what
However, analysts have warned investors that the prices of many marijuana stocks as a result of these stormy gains no longer reflect the fundamental values of their underlying businesses. On Wednesday, many traders apparently decided to heed these warnings and sell their shares.
Yet cannabis remains one of the biggest growth opportunities for investors in the coming decade. And if the share prices of industry leaders such as Canopy Growth and Aphria decline even further in the coming days, it is possible that long-term investors may find some interesting deals.