Cannabis stocks followed the market
Earlier in this series, we saw that last week was negative for the markets in the United States and Canada. A rising tide lifts all boats, and vice versa.
With the increased perception of market risk, it’s natural that cannabis-related stocks also experienced a sell-off last week. Let’s look at this in more detail.
Performance last week
Last week, all companies and ETFs (MJX) (HMLSF) in the chart above ended in the negative territory. Aurora Cannabis (ACB) (ACBFF) emerged as the biggest loser, falling almost 36% between its opening on January 29 and its closing on February 2.
During the same period, MedReleaf (LEAF) fell almost 33%, followed by Cronos Group (PRMCF), which fell 32%. Canopy Growth (WEED) and Aphria (APH) both saw falls of as much as 31% in the week, while Emerald Health (EMHTF) fell 30%.
While these companies were the biggest losers, companies that have some exposure to cannabis-related drugs in the United States also fell in the week. These included AbbVie (ABBV), which fell 7%, Insys Therapeutics (INSY), which fell 10%, and Corbus Pharmaceuticals (CRBP), which fell 21%.
Last week’s sell-off also wiped away all the YTD (year-to-date) gains among cannabis stocks. In the next article, we’ll discuss what could have accelerated the negative sentiment in the cannabis sector.