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Online Investors Switch Focus to Marijuana Stocks

Twitter surges 13% after reporting strong earnings despite 'unusual circumstances'
By Newser Editors and Wire Services
Posted Feb 10, 2021 3:50 PM CST

(Newser) – Major US stock indexes ended another up-and-down day of trading more or less where they started out, although a small gain nudged the Dow Jones Industrial Average to another record high. The S&P 500 fell 1.35 points, or less than 0.1%, to 3,909.88. The Dow Jones Industrial Average rose 61.97 points, or 0.2%, to 31,437.80. The Nasdaq fell 35.16 points, or 0.3%, to 13,972.53. Twitter jumped 13% after delivering quarterly report cards that were much better than analysts were expecting. Twitter became the latest tech giant to report strong results despite the pandemic. The company said Tuesday that it seen above average growth despite "unusual circumstances," an apparent reference to the banning of Donald Trump and thousands of QAnon supporters, CNBC reports.

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Cannabis stocks surged as members of the same online forum that hyped up GameStop, AMC Entertainment, and other struggling companies in recent weeks began encouraging each other to snap up shares in marijuana companies, the AP reports. Canadian cannabis company Sundial Growers vaulted 74%. The stock is up more than 500% so far this year. Shares in Aphria and Tilray, Canadian marijuana companies that agreed to combine in December, also rose. Aphria was up about 11%, adding to its 281% gain this year, while Tilray jumped about 37%. It's up more than 600% this year. Marijuana stocks had been surging before becoming the latest darling of online investors as more states moved last year to allow legal sales. "At least in this case there's either momentum or fundamentals underpinning a move like this," says Sam Stovall, chief investment strategist at CFRA.

(Read more stock market stories.)

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