Tilray stock continues its unprecedented rise in the US stock market this week
Tilray continues to be the hottest marijuana stock in the United States. It contributed to the rise of Dow Jones, S&P 500 and Nasdaq futures this week with overnight gains on Wednesday of 9.6 percent, followed by 9.3 percent in extended trading.
Tilray made its public launch just seven short weeks ago at $17. According to Citron Research, this price reflects the careful consideration the company took in its future deals and planned partnerships. In mid-August, Tilray stock began to outpace publicly-traded marijuana companies in Canada.
Federal regulations currently prevent Tilray and all other US-listed stocks from having any business operations in the US – a rule that does not apply to Canadian-listed stocks. Despite this catch-22, US retail investors began heavily investing in marijuana stocks over the summer and show no signs of slowing down.
Citron noted that Tilray is not far behind leading stocks including Fidelity, Ameritrade, Apple, and Facebook. However, the research firm says they see signs of a retail bubble, citing signs at the company along with the dramatic rise in Tilray stock as bad omens. Citron claims it has received “hundreds of emails” from investors who struggle to justify the price increases with valid analysis.
Citron tweeted last week that Tilray is by far the most expensive in its space, noting that the stock was at one point three-times higher than competitor Canopy. The research firm then declared marijuana stocks to be more ridiculous than cryptocurrency with Tilray being the worst, saying it surpassed its peers too quickly.