Quick comedown... Weed stocks soared at the beginning of last week on some canna-good news. First, Canopy said it expects to be profitable within a year (despite a big quarterly loss). Then, Tilray landed a deal to distribute its medical marijuana in the UK — shares doubled in value from Monday to Wednesday. Reddit traders may have boosted the buying, potentially bullish on the possibility of federal marijuana decriminalization in the US. But the canna-rally quickly relented, and Tilray shares plunged a record 50% on Thursday. Canopy and Aurora also tumbled, closing lower for the week.
Chip-outta-luck.... Try Pringles? Automakers are hungry for chips to stick in their cars. ICYMI: GM and Ford had to shut down plants this year because of a global chip shortage. Last week, GM said it expects lost production from the shortage to slash 2021 profit by $1.5B to $2B (Ford projects a similar L). GM shares dipped for the week, despite strong quarterly earnings and an upbeat profit outlook for 2021. Lucky for them, the White House is working to address the shortage. Expect an exec order from President Biden in the coming weeks.