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Cannabis Stocks Keep Falling

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Updated

Sector weakness

The cannabis sector has seen one of its weakest months so far this year with most stocks trading lower since the beginning of April. The recent earnings season has led to a correction for most cannabis players within the industry despite continuing investments in growth. The Horizons Marijuana Life Sciences ETF (HMMJ) has lost nearly 3.3% so far this month while the ETFMG Alternative Harvest ETF (MJ) gave up nearly 5.6%. HMMJ lost 0.62% while MJ lost 1.1% today.

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Stocks decline

Most cannabis stocks fell early today with Green Thumb Industries (GTBIF) emerging with the biggest loss, down 2.6%. KushCo Holdings (KSHB) was down 1% while Innovative Industrial Properties (IIPR) was sightly up, by 0.14%.

Early this morning, Joe Biden, who hasn’t supported cannabis legalization, announced his bid for the 2020 US presidential race, which may explain some of the weakness in the market today.

Tilray (TLRY) followed with its stock losing nearly 2.1% during the day. Tilray is among the few cannabis stocks with negative returns year-to-date, at 31%.

Other stocks that were bleeding today include Aphria (APHA), which lost about 1.5%, Emerald Health (EMHTF), which also lost 1.5%, and CannTrust (CTST) which lost 1.4% around noon ET today.

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