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Cannabis Stocks Experienced Extended Weakness Last Week

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May. 20 2019, Published 7:03 a.m. ET

Cannabis stocks in the red

The week ending May 17 was broadly negative for the cannabis sector. Most of the companies in the sector ended in the negative territory. The Horizons Marijuana Life Sciences ETF (HMMJ) lost nearly 1.4%, while the ETFMG Alternative Harvest ETF (MJ) lost ~1.8% during the same period.

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Stocks that declined

Last week, Canopy Growth (WEED) was among the biggest decliners compared to its peers in the above chart. The stock lost nearly 6% in the US market. Besides Canopy Growth, Aphria (APHA) was also deep in the red with a decline of 4.3% for the week ending May 10–17.

Last week was eventful due to companies reporting their earnings. Aurora Cannabis (ACB) delivered sequential net revenue growth of 20% to $65 million from $54 million in the previous quarter. However, the company reported a loss per share of $0.16, which missed analysts’ estimate of $0.06. Aurora Cannabis stock fell almost 2.2% after the earnings release. The stock recovered through the end of last week and rose nearly 4%.

OrganiGram (OGRMF) was also in the positive territory. The company was one of the top performers in the sector. The company gained ~11.8% through last week. OrganiGram reported that the stock will trade on the NASDAQ Global Select Market beginning May 21. CannTrust (CTST) gained ~3.2% last week, while Cronos Group (CRON) was in the red with a decline of 3.1%.

To learn more about Aurora Cannabis’ earnings, read How Aurora Cannabis Fared in Its Third Quarter.

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