Chemdawg marijuana plants grow in a factory in Smiths Falls, Ontario, Canada on October 29, 2019.
Blair Gable | Reuters
Reddit merchants had a new goal this week: cannabis stocks.
Before falling back Thursday, Tilray’s shares were up more than 50% on Wednesday, while Aurora Cannabis jumped around 20%. Both stocks then plummeted, but have remained higher since the beginning of the week.
The WallStreetBets Reddit thread has shed light on an industry analysts have been watching for a while, describing it as a “great long-term opportunity.”
In a recent note, Piper Sandler analysts said cannabis could become a $ 115 billion market by 2030, if recreational use is legalized at the federal level. Even if legalization isn’t in the US, the sector’s potential is still “attractive,” worth $ 50 billion by 2030, the investment bank added. Recreational cannabis use is now legal in 15 US states.
Among analysts’ top cannabis stocks, one in particular was popular with three of the investment companies, while Goldman Sachs noted a company “underestimated” by investors.
These are the top picks of cannabis investment firms.