These 2 Cannabis Stocks Were Among The Most Searched Benzinga Tickers In 2021: Here’s Why


Among the 20 most searched tickers on Benzinga in 2021 were two well-known cannabis companies. Here are their names and why they were heavily searched in 2021.

Tilray: Ranking as the 18th most searched ticker on Benzinga Pro in 2021 was Tilray Inc (NASDAQ:TLRY). Operating in Canada and over 20 countries worldwide, Tilray is a leading global cannabis-lifestyle and consumer packaged goods company.

One theme continued with Tilray in 2021 that carried over from 2020. Tilray completed a merger with Aphria in May that was announced in the previous year. The merger created one of the largest global cannabis companies.

Tilray announced the acquisitions of Breckenridge Distillery, Green Flash Brewing and Alpine Beer Co. in December.

“We see tremendous potential for Breckenridge and our existing SweetWater brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment,” Tilray CEO Irwin Simon said.

The acquisitions continue to prepare Tilray for further expansion in the U.S. when and if cannabis is federally legalized.

The deals also reflect Tilray’s goal of diversifying itself. “These significant, diversified revenue streams are key to delivering on our ultimate goal of industry leadership with $4 billion in revenue by the end of fiscal year 2024.”

Related Link: Top 10 Most Searched Tickers On Benzinga Pro In 2021: Tesla, Apple, AMC, GameStop And More 

Sundial: Cannabis company Sundial Growers Inc (NASDAQ:SNDL) was the 14th most searched ticker on Benzinga Pro in 2021. The company also ranked as the seventh most searched ticker in the first quarter.

Sundial Growers saw strong interest due to its low price per share, making it a penny stock and creating a wide retail following.

Sundial Growers CEO Zach George was a featured speaker at the October Benzinga Cannabis Capital Conference. George said that there were three main factors affecting the Canadian cannabis market: price compression, regulatory dysfunction and market share competition.

“Too many companies are vying for market share,” George said, adding that not all of them will survive.

George credited retail traders as being a new opportunity for Sundial. “I think the retail investor needs to be respected and recognized as a market participant,” he said.

George noted that retail investors have more tools and are becoming “more and more sophisticated.”

Sundial said it has limited the number of discounted products that it offers, with a new business model centered on profitable revenue growth. The company also indicated it is committed to the Canadian market but sees opportunities in the U.S.

Another reason Sundial likely saw strong search demand in the first quarter and full year was a stock trade made by well-known internet personality and Barstool Sports founder Dave Portnoy.

In February, Portnoy bough 377,000 shares of SNDL and flipped them for a quick $50,000 profit. The transaction came as SNDL saw strong interest on WallStreetBets as well.

Why It’s Important: There are many publicly traded cannabis companies. Although due to regulatory hurdles, few of the public cannabis companies trade on major exchanges like Tilray and Sundial. Several popular retail stockbrokers do not offer OTC trading, limiting the number of cannabis stocks investors can buy.

The U.S. Congress has been vocal throughout 2021 about the potential of moving forward on various cannabis bills, which could make cannabis stocks like SNDL and TLRY among top searches again in 2022.

Price Action: TLRY shares ended 2021 down 13.6%, at $7.28. On Wednesday, the stock was trading at $6.93 down 2.46% on the day.

SNDL shares ended 2021 up 19.4%, ending the year at $0.58. The stock was down 0.84% on Wednesday at $0.64.

Related Link: What 2021 Taught Us About Youth Cannabis Use

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *