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ACB Trades Sideways ahead of Its Earnings Results

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Aurora’s earnings

The earnings season is here, and Aurora Cannabis (ACB) is expected to report its first-quarter earnings results next week. Ahead of Aurora’s earnings release, investors have been proceeding with caution, with the stock trading sideways for the past month. ACB was down ~0.8% as of 12:00 PM EDT on May 1.

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What to watch

During Aurora’s earnings announcement, one of the key metrics investors and analysts will be watching for is a healthy demand for recreational cannabis, which should be reflected in the company’s revenue. Its earnings, on the other hand, are expected to remain depressed, as it has continued to make investments in future growth.

Cronos Group (CRON), which is also expected to report its earnings results next week, was down 1% as of noon on May 1.

The Horizons Marijuana Life Sciences ETF (HMMJ), which can be considered a cannabis sector benchmark, was trading slightly higher with a rise of 0.38%, while the ETFMG Alternative Harvest ETF (MJ) was nearly flat in the first half of the day.

Canopy’s gains

Canopy Growth (WEED) (CGC) has managed to attract investors at large. The company’s recent run-up stood in contrast to the movements of most of its peers in the sector. On May 1, the stock was up ~1.8% as the company continued to venture into new markets. HEXO (HEXO) was also trading with a rise of 1.8% in the first half of the day.

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