Why Sundial Growers Stock Spiked 48.5% Today

Sundial Growers Inc 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 GME and AMC Entertainment Holdings Inc 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.