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Tilray Slumps and Pot Stocks Wobble as Retail Investors Take Aim

Shares of Tilray, Aphria and Sundial Growers fluctuate as the cannabis sector catches the continued attention of traders on Reddit.

Tilray  (TLRY)  was tumbling Thursday, following its jump of 51% in the previous session, as the cannabis sector has caught the continued attention of traders on Reddit.

Tilray fell almost 35% to $41.75 25.43% in trading Thursday. It had risen substantially in the premarket session, and its three-day gain to start the week was its biggest ever, according to Bloomberg.

Aphria  (APHA) , which agreed in December to merge with Tilray in an all-stock deal to create the world’s biggest marijuana production and distribution company, was down more than 23%.

Sundial Growers  (SNDL)  was another cannabis stock seeing serious action early Thursday, rising more than 3%. 

Reddit, the message platform, has roiled the market for the past several weeks, as retail investors rallied around such companies as GameStop  (GME) , AMC Entertainment  (AMC) , BlackBerry  (BB)  and Nokia  (NOK) .

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Cantor Fitzgerald analyst Pablo Zuanic told Barron's that a lot of the activity in pot stocks "can be attributed to retail investors deciding to look for GME type opportunities in cannabis."

Sundial was the most discussed stock on WallStreetBets on Thursday, according to SwaggStocks, while Tilray and Aphria also were getting lots of mentions.

Aurora Cannabis  (ACB) , which reports quarterly earnings Thursday, rose 7.7% to $16.81.

Tilray surged earlier this week after unveiling an agreement with peer Grow Pharma to import and distribute medical-cannabis products in the United Kingdom.

TheStreet's Jim Cramer has his eyes on these stocks in the cannabis sector: GrowGeneration  (GRWG) , Canopy Growth  (CGC)  and Constellation Brands  (STZ)

How Jim Cramer Is Approaching the Cannabis Sector