Short Sellers Wind Down Pot Stock Bets as Congress Mulls Action
- Short interest in cannabis stocks has tumbled in the past year
- Investors watching for any sign of US federal legalization
Photographer: Bing Guan/Bloomberg
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Cannabis short sellers are ratcheting down their bets that the beleaguered sector will continue its slide.
Short interest in pot stocks has tumbled to $632 million from $3.14 billion in May 2021, even as share prices plunged in the past year, according to data from S3 Partners. While analysts are skeptical that the federal government will approve a legal weed market soon, Congress is set to consider some cannabis legislation, which could lead to a rally in the sector.