Cannabis sector last week
Last week was lackluster for the cannabis sector, and most of the stocks in the sector ended in the negative territory. Cronos Group (CRON) was among the worst performers with losses of ~7% after it reported earnings, which largely disappointed Wall Street. The company also received price rating and price target cuts after its earnings. Read Cronos Group: Analysts’ Ratings after Its Q1 Earnings.
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Dampened market sentiment
Cronos Group’s earnings dampened investor sentiment, and most cannabis stocks fell during the week. Aurora Cannabis (ACB), for example, lost nearly 4.6% last week, while CannTrust CTST) ended about 3.8% lower during the same period. While CannTrust continued to decline last week, the stock is still in the positive territory YTD with a gain of about 19%.
Heavyweight Canopy Growth (WEED) (CGC) also ended last week on a weak note with a decline of 3.3%, while OrganiGram (OGRMF) lost nearly 1.4% last week as well. In contrast to these stocks, Aphria (APHA) was one of the few to gain last week. The stock was up nearly 3.2%.
The overall market sentiment was pretty pessimistic on the back of global trade tensions, which began to intensify on May 5. The Horizons Marijuana Life Science ETF (HMMJ) ended last week down by 3.2%, while the S&P 500 declined by 2.2%.