Cronos Group stock slumps
Today, Cronos Group (CRON) reported its Q4 2018 and full-year earnings. The company reported sales growth of nearly 250% in the quarter but also reported a bigger-than-expected loss. The company’s quarterly performance failed to impress investors, and the stock sold off in its first half of the trading session. Cronos Group declined nearly 4% as of noon ET. See Cronos Group’s Q4 Earnings: Key Takeaways.
Let’s look at how Cronos Group’s peers were doing.
Following the lead of Cronos Group, peer Aurora Cannabis (ACB) fell nearly 1.2% as of noon, and Tilray (TLRY) lost nearly 0.89%. Canopy Growth (WEED)(CGC) was also trading in the negative territory, down nearly 0.11%.
The overall sector also experienced broader weakness with the Horizons Marijuana Life Sciences ETF (HMMJ) down about 0.1% and the ETFMG Alternative Harvest ETF (MJ) down nearly 0.22% in the first half of the day. This fall marks the fourth trading day that the cannabis sector has experienced weakness.
This weakness was largely fueled by concerns of a global slowdown. Particularly, the US Treasury yield curve recently inverted—which has, in the past, preceded a recession.