What happened
Cannabis stocks plummeted on Thursday as traders rushed to make profits at companies that analysts said saw their stock prices rise very, very fast.
See how some of the most popular marijuana stocks were doing at 2:15 pm EST.
And
Pot stocks have caught the attention of Reddit merchants and other social media sites in recent weeks. Spurred on by excitement about the possibility of federal marijuana legalization in the U.S., now that Democrats control the Senate, House of Representatives, and the White House, many 8.9 million-member WallStreetBets Reddit traders have increased their stakes in weed stocks. .
The shares of Aurora, Aphria, Cronos, Canopy and Hexo gave up some of their recent earnings on Wednesday. Image source: Getty Images.
Until the market closed on Wednesday, this optimism was going well for investors. Many cannabis stocks have more than doubled since the beginning of the year.
APHA data by YCharts
What now
However, analysts have warned 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 investors apparently decided to heed these notices and sell their shares.
Still, cannabis remains one of the biggest growth opportunities for investors in the next decade. And if the stock prices of industry leaders like Canopy Growth and Aphria recede further in the coming days, it is possible that investors with a long-term outlook will find some intriguing deals.