The so-called “Meme Stock” revolution is upon us. Retail investors and social media trading “gangs” are ganging up on institutional hedge fund shorts and bears with massive implications for the publicly traded stock market.
We have seen it take undeniable shape in stocks like GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) over recent weeks and months. We have also seen inklings of the same phenomenon in the cannabis space. One might also point out the popularity of a number of stocks in this space on the r/WallStreetBets Reddit platform, which has been something like Ground Zero for the meme stock dynamic.
We would also note that the notion of “underdog growth theme” is a sort of spiritual touchstone idea that seems to undergird this phenomenon. And the cannabis space might be said to resonate with this idea in powerful ways. The overall space is growing gangbusters and has been for years. Experts continue to place it at or near the top of the industry growth rankings.
Grand View Research recently came out with a new analytic take, noting that the global legal marijuana market size was valued at $9.1 billion in 2020 and is now expected to expand at a compound annual growth rate (CAGR) of 26.7% from 2021 to 2028, suggesting that the space could be worth over $60 billion by that time.
This has strong implications for stocks in the space, including Aurora Cannabis Inc (NYSE:ACB), Canopy Growth Corp (NASDAQ:CGC), Tilray Inc (NASDAQ:TLRY), GrowGeneration (NASDAQ:GRWG), Sugarmade Inc (OTCMKTS:SGMD), and Sundial Growers (NASDAQ:SNDL).
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Published: June 10, 2021
Founder & Interim Editor of L.A. Cannabis News