The Luminar Rebuts Mobileye Rumors; Tilray treats as Nasdaq imports higher

The Nasdaq Composite (NASDAQINDEX: ^ IXIC) a full-time record set high Tuesday, and even a quiet Wednesday morning on Wall Street was not enough to hold back the index. As of 11:30 am EST, the Nasdaq had gained another 0.2% for pushing further into the top range.

Investors in the Nasdaq continue to take a closer look at some of the hot investment trends that affected the markets in 2020. Self-driving vehicle technology has been an area of ​​innovation, and Luminar Technologies (NASDAQ: LAZR) he gained ground despite answering some questions about his relationship with a key partner. At the same time, a cannabis cultivator Tilray (NASDAQ: TLRY) we helped lift the entire marijuana stock segment Wednesday on news of a major merger with an industry competitor.

Luminar kicks back

Luminar Technologies climbed more than 6% on Wednesday morning. That was just enough to recoup a portion of the stock ‘s loss from Tuesday, with the last automated lidar expert coming out and reassuring investors on a key issue.

Luminar shares had been under pressure earlier in the week, as reports had suggested that Mobileye’s self-driving car system developer could operate on its own lidar sensor rather than working with Luminar. Mobileye is a Intel (NASDAQ: INTC) subsidiary and hopes to launch a taxi service in several international cities using vehicles provided by a Chinese electric vehicle company NIO (NYSE: NIO).

However, Luminar came out with a press release Wednesday morning clarifying that it will work with Mobileye on its autonomous vehicle solution, providing technology that will help deliver what Luminar calls “safety.” and unparalleled certification for level 4 autonomous driving. ”Mobileye CEO Amnon Shashua was also stressed, noting that while Mobileye has historically worked on its own lidar, to they still plan to work closely with Luminar.

The release seems to have given investors some confidence. However, with the stock going up from $ 10 per share to just $ 40 to fall back into the low $ 20s, Luminar shareholders need to have a strong stomach to withstand volatility.

Cannabis leaf based on top of a pile of other leaves.

Image source: Getty Images.

Tilray to connect with Aphria

Elsewhere, shares of Tilray were 19% higher. Other areas of the stock market have seen a lot of consolidation recently, so news of a possible connection between Tilray and Aphria (NASDAQ: APHA) is an exciting development for marijuana investors.

Late Tuesday, reports surfaced that Tilray and Aphria were talking about a possible merger. The reports claimed that a final contract could be announced very soon, and that view was correct, with both companies giving details Wednesday morning.

Under the terms of an unusual buy-back contract, Aphria shares will receive 0.8381 shares of Tilray stock. However, Aphria’s shareholders will end up with the majority of shares in the ongoing company, with Tilray shareholders holding about 38% of the outstanding shares after the contract closes. . That’s why Tilray shares are up even as Aphria stock is still relatively flat. Aphria CEO Irwin Simon will jointly become CEO of the company.

Marijuana stocks have declined in recent months, but are still well below their best levels since the height of the marijuana investment trend a year or two ago. With such moves, it is possible that investor interest in Tilray will rise following the merger with other cannabis companies – especially as trends toward more legalization in the U.S. market continue.