The unlikely tale of the sub-reddit Wall Street Bets (WSB) taking on the world of institutional investing seems fit for a Adam McKay film adaptation, but the saga isn't over yet. Enter the marijuana stocks – the epilogue at the end of the film that signals WSB's influence may not be over (cue an ethereal cover song playing in the background). Much to the dismay of some more seasoned WSB members, the sub's notoriety has caused an uptick in membership, bringing with it a slew of new members trying to find the next big get rich quick stock (including, perhaps, some whose intentions are more nefarious, i.e. the big bad hedge funds themselves). The inevitable outcome was center stage last week as the markets saw huge gains (and then deep dips) on weed stocks. After some posts and comments signaling that gains could be made investing in companies like Aphria Inc. (APHA), Tilray, Inc. (TLRY), and Sundial Growers (SNDL), the stock prices took off and pot stocks across the board benefited from the attention. While more than a few of the posts and comments advised that these were long-term investments, the quick gains were exactly what the masses wanted, and, unlike their GME predecessors, they had no David v. Goliath righteous indignation to hold the stocks long-term. This new "pump and dump" culture has left many WSB members to wonder if this is the beginning of the end for the once under the radar sub that was more fond of posts showing how much money was lost rather than how much was gained. For now, the new interest in weed stocks has brought to light some potential markers that the stock may still be a good long-term investment. There is discussion that the new Democratic-led congress could make legalization a reality, and with more states legalizing or decriminalizing weed, the bets may pay off. In the meantime, I'll keep holding my 14 shares of APHA @ $24.33 and hope my small contribution to the phenomenon that is MEME stocks pays off. To the moon!
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