The Nasdaq Composite (^IXIC -2.05%) set an all-time record high on Tuesday, and even a quiet morning on Wall Street Wednesday wasn't enough to hold the index back. As of 11:30 a.m. EST, the Nasdaq had gained another 0.2% to push further into record territory.
Investors in the Nasdaq continue to look closely at some of the hot investing trends that have dominated the markets in 2020. Self-driving vehicle technology has been a big area of innovation, and Luminar Technologies (LAZR 3.97%) gained ground despite having to answer some questions about its relationship with a key partner. Meanwhile, cannabis cultivator Tilray (TLRY) helped lift the entire marijuana stock sector Wednesday on news of a big merger with an industry rival.
Luminar bounces back
Luminar Technologies climbed more than 6% on Wednesday morning. That was only enough to recover a portion of the stock's losses from Tuesday, with the automotive lidar specialist finally coming out and reassuring investors on a key issue.
Luminar shares had been under pressure earlier this week, as reports had suggested that self-driving car system developer Mobileye might work on its own lidar sensor rather than working with Luminar. Mobileye is an Intel (INTC -2.40%) subsidiary and hopes to launch a taxi service in several international cities using vehicles supplied by Chinese electric vehicle company NIO (NIO -5.00%).
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 provide what Luminar called "uncompromised safety and validation for level 4 autonomous driving." Mobileye CEO Amnon Shashua weighed in as well, noting that even though Mobileye has historically worked on its own lidar, it's still planning to collaborate closely with Luminar.
The release seems to have given investors some reassurance. However, with the stock having rocketed from $10 per share to $40 only to drop back into the low $20s, Luminar shareholders need to have a strong stomach to withstand volatility.
Image source: Getty Images.
Tilray to tie up with Aphria
Elsewhere, shares of Tilray were higher by 19%. Other areas of the stock market have seen a lot of consolidation lately, and so news of a possible tie-up between Tilray and Aphria (APHA) was an interesting development for marijuana investors.
Late Tuesday, reports surfaced that Tilray and Aphria were talking about a possible merger. The reports speculated that a final deal could be announced very soon, and that conjecture turned out to be correct, with the two companies providing details Wednesday morning.
Under the terms of the somewhat unusual reverse acquisition deal, Aphria shareholders will receive 0.8381 shares of Tilray stock. However, Aphria shareholders will end up with the majority of shares in the continuing company, with Tilray shareholders to own about 38% of outstanding shares following the deal's closing. That's why Tilray shares are up even as Aphria's stock remains relatively flat. Aphria CEO Irwin Simon will become CEO of the combined company.
Marijuana stocks have rebounded in recent months, but they're still well below their best levels from the height of the marijuana investing trend a couple years ago. With moves like this, it's possible that investor interest in post-merger Tilray and other cannabis companies will rise -- especially as trends toward greater legalization in the U.S. market continue.
