Cannabis is back on the menu. It seems that even as the meme stock explosion that cooled down the cannabis industry continues to soar, pot can have a rebound and see green once again. The Reddit forces are pushing cannabis stocks amid the AMC (NYSE:AMC) frenzy, and the industry is being lifted by promising support from Amazon (NASDAQ:AMZN).
Cannabis stocks have looked more like tumbleweed stocks in 2021. The heightened performance of AMC and GameStop (NYSE:GME) have been drawing interest away from the burgeoning industry.
And more importantly, many investors expected this to be a huge year for legalization. With Democrat Joe Biden in office, many were rooting for speedy federal legalization.
However, that largely has not been the case. States have been taking it upon themselves to legalize the plant for recreational use, like New York back in March. But, legalization at the federal level has made little to no progress, even with Democrats controlling the White House and Congress.
Cannabis Stocks Rally Behind Support From Amazon and Reddit
Today though, things are looking up for cannabis. It appears that legalization is back on the government’s radar with the reintroduction of the MORE Act. If lawmakers give it the green light, this bill will federally decriminalize cannabis.
Bolstering the news is a very exciting turn of events which is seeing Amazon throw its support behind the MORE Act. The retail giant’s support will certainly be a huge leg up in passing the bill this time around. Additionally, the company is making known its plans to relax internal cannabis testing for all positions not under regulation by the Department of Transportation.
Tilray (NASDAQ:TLRY) and Sundial Growers (NASDAQ:SNDL) are two of the big winners today, thanks to both Amazon and reinvigorated support from Reddit’s r/WallStreetBets. TLRY is seeing lots of posts including some deep-dives calling it a great long-term growth play. Likewise, users are discussing SNDL more than usual recently, albeit as a moonshot rather than a long-term investment.
The news and revamping cannabis enthusiasm on Reddit are boosting TLRY and SNDL greatly today. SNDL is up nearly 14% on the day to $1.29. It’s also seeing a threefold increase in trading volume from its average. TLRY is up 6% on today’s session to a price of $20.14. The company is also seeing significantly increased trading volume, with 71 million shares trading hands against the 23 million average.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.