CNBC.com's MacKenzie Sigalos brings you the day's top business news headlines. On today's show, CNBC's Frank Holland hits the massive plunge in cannabis stocks after Reddit traders piled into the space. Plus, CNBC's Josh Lipton breaks down the ongoing global semiconductor shortage that is snarling production schedules of everything from pickup trucks to gaming consoles.
Several cannabis stocks dropped Thursday, giving up some of the sharp gains from earlier this week as Reddit traders piled into the names.
Shares of Tilray fell 49.7% after rallying 50% on Wednesday. Aphria lost nearly 36% and Aurora Cannabis fell 23.5%. Canopy Growth shares declined by 22%.
These pot stocks were poised to extend their rallies before Thursday's open, surging in premarket trading. Shortly ahead of the market open, however, the names turned sharply lower.
A chip shortage that started as consumers stocked up on personal computers and other electronics during the Covid-19 pandemic now threatens to snarl car production around the world.
On Tuesday, GM said that it would extend production cuts in the U.S., Canada, and Mexico until the middle of March. They join a long list of major automakers, including Ford, Honda and Fiat Chrysler, which have warned investors or slowed vehicle production because of the chip shortage.
But it's not just the automotive industry that's struggling to get enough semiconductors to build their products. AMD and Qualcomm, which sell chips to most of the top electronics firms, have noted the shortage in recent weeks. Sony blamed the chip shortage for why it's so hard to get a PlayStation 5 game console.
Shares of Bumble, which operates a dating app under the same name, closed up 63.5% in its initial public offering Thursday on the Nasdaq.
The company's stock began trading up nearly 77% at $76 per share under the ticker symbol "BMBL." It priced the shares at $43 apiece, above its target range of $37 to $39, and sold 50 million shares.
The company closed trading with a market cap of about $7.7 billion.
On Bumble, founded in 2014 by CEO Whitney Wolfe Herd, women have to initiate the first conversation for heterosexual matches. At 31, Wolfe Herd is the youngest female founder to take a U.S. company public. She also joins the ranks of an extremely small list of women founders who led IPOs, including Stitch Fix's Katrina Lake, who took her company public in 2017, and Julie Wainwright, who took The RealReal public in 2019.