Today, the US stock market was trading in the green after President Trump tweeted that he planned to delay the tariffs on Chinese imports by two weeks. At 1:40 PM EDT, the S&P 500 Index and the Dow Jones Industrial Average were up 0.6% and 0.5%, respectively. However, the cannabis ETFs fell.
Cannabis sector performance
The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) fell 1.9% and 2.5%, respectively. The majority of the cannabis players were in the red. Aurora Cannabis’s (ACB) weak fourth-quarter earnings helping bring the cannabis sector down.
ACB falls approximately 9%
Aurora Cannabis stock was on the rise this month as investors were optimistic over its fourth-quarter earnings. As of yesterday, the company’s stock price had increased 15.9% this month. However, the company reported weak fourth-quarter performance after the market closed on Wednesday.
The company reported revenue of 98.9 million Canadian dollars, which was below its guidance and analysts’ expectations. Although the company’s management expected to report positive EBITDA, its EBITDA came in at -11.7 million Canadian dollars.
Please read Aurora Cannabis: Are Its Q4 Results Good or Bad News? to learn more about Aurora’s fourth-quarter performance. The company’s weak fourth-quarter performance led its stock to fall 8.9% at 1:40 EDT.
The Green Organic Dutchman Holdings (TGOD) (TGODF) introduced its premium organic products in the Ontario market at the end of August. Today, the company announced that the demand for its products had exceeded its expectations.
Despite the announcement, TGOD was trading down 1.8% at 1:40 PM EDT. Aurora’s dismal fourth-quarter performance appears to have led to a fall in the company’s stock price. Through September 11, TGOD’s stock price had increased by 10.6% this year. Earlier this month, Aurora sold its remaining stake in TGOD, which led the company’s stock to fall.
Today, Curaleaf Holdings (CURLF) launched medical cannabis tablets at all of its 26 dispensaries in Florida. Curaleaf was the first company to launch the product in the state.
In the company’s press release, Curaleaf CEO Joe Lusardi stated, “Knowing that our premium quality medical cannabis products allow so many of our patients to live life well, we are always looking for alternative administration methods to meet patients’ needs.”
However, the weakness in the cannabis sector appears to have led Curaleaf’s stock to fall 3.6% at 1:40 PM EDT.
Aphria was down approximately 3%
Aphria (APHA) has returned 15.8% year-to-date through September 11. The company reported stellar fourth-quarter earnings on August 1.
Aphria had outperformed analysts’ top-line and bottom-line expectations, which led to an increase in the company’s stock price. However, its stock was down 2.9% at 2:00 PM EDT today. ACB’s weak fourth-quarter earnings appear to have dragged the company’s stock down.