Why Sundial Growers Stock Spiked 48.5% Today
Sundial Growers Inc (NASDAQ:SNDL) stock closed nearly 48.5% higher on Monday.
What Happened: The cannabis play stock received attention from Reddit investor group r/WallStreetBets, which has over 8 million members.
See also: How to Invest in Cannabis Stocks
As of Jan. 14, 35.79% of the float is short, and the group is known to target buying shares of companies such as GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC), which are similarly heavily shorted.
Why It Matters: Sundial is among a list of so-called “meme stocks” in the crosshairs of r/WallStreetBets investors, as compiled by Swaggy Stocks.
The comment volume of the stock is 601, while the average comment volume is 321. As a comparison, GameStop attracted 13,772 comments and the average comment volume for that stock is 6,601.
Taking advantage of the investor interest, Sundial said last week it was raising $100 million through a sale of stock and warrants.
Price Action: Sundial shares closed 48.47% higher at $1.21 on Monday.
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