It felt like a wild Wednesday for cannabis stocks after shares of Canadian cannabis company Tilray Inc (NASDAQ:TLRY) were halted twice on Wednesday. Shares spiked up 40%, fell into negative territory later and then spiked in the last 15 minutes of trading to finish higher.
Tilray stock soared to trade at a record US$300 per share before suspected sell-stop orders kicked in from players taking money off the table to knock the stock down to US$263.34, still up almost 70% on the day.
At that point, trading in the stock was halted for the first time. The shares began trading about 10 minutes later and traded 64% up at US$257.73 about an hour before the close of business.
READ: Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in
Tilray was not the only cannabis stock to see volatility on Wednesday.
For Canadian cannabis company, Canopy Growth Corp (NYSE:CGC, TSX:WEED), wild Wednesday also hit, seeing the stock drop 5.75% at C$63.46. After the company's less-than-impressive quarterly results, an additional US$4bn investment from beer producer Constellation Brands Inc (NYSE:STZ) may have felt like a godsend.
However, trader and market commentator Tim Collins said the deal may be the worst thing to ever happen to Canopy in the short-term, shaping the company’s narrative in a way that makes unattached Tilray Inc (NASDAQ:TLRY) the more appealing cannabis stock.
“Everyone loves a mystery; the excitement of the unknown, the potential of what may come,” Collins told Proactive Investors in an email. “Without a deal, bulls can dream about whatever potential fits their narrative.”
READ: Why Canopy Growth’s deal with Constellation was the best - and worst - thing for the shares
Shares of other cannabis stocks were also volatile on Wednesday.
The North American Marijuana Index, which tracks the top cannabis stocks in the United States and Canada, was down 8.3% to US$331.66 on Wednesday.
The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, was down 1.42% at US$24.63.