On April 2, the overall cannabis sector appeared weak. The Horizons Marijuana Life Science ETF (HMMJ) was trading lower in the first half with a 0.3% decline. The ETFMG Alternative Harvest ETF (MJ) was trending 0.8% lower around 12:00 PM EST.
The market sentiment towards the cannabis sector continued to weaken after earnings season. Investors have been weighing their expectations with reality. Innovative Industrial Properties (IIPR) was one of the biggest losses among the stocks that we track at Market Realist. The stock lost nearly 3.3% during the first half of the day on April 2.
Aphria (APHA) didn’t hold its gains despite announcing developments on the product side in Germany. The company launched skincare products derived from cannabis including creams, masks, and serums. The attractive part about the cannabis industry is that its derivatives can have medical and consumer applications. Not many industries or products have that wide of an audience.
Since the industry is new and the sales potential is just a guess, the stocks have experienced significant volatility. The volatility translates into risk for investors.