Cannabis stocks bled on Thursday after investors sent Canopy’s stock sliding on disappointing quarterly earnings that saw the producer record a steep loss.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada dropped 5.6% at 114.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF fell 6.1% to C$9.17, while the OTCQX Cannabis Index sank 4.2% at 430.2 points.
While investors braced for bad news as the biggest pot producer reported earnings, it was hard to imagine that Thursday’s results could be this bad.
Canopy Growth Corp (TSE:WEED) (NYSE:CGC) shares hit a record low after posting a C$375 million loss after its bet on softgels and oils went awry.
Its revenue came in at C$77 million, a significant decrease from the previous quarter as sales fell 7%.
The cannabis giant has now missed analyst expectations in eight out of the last 11 quarters it has reported.
Shares of Canopy sank an eye-watering 15.5% in Toronto, hitting C$20.66, and 15.9% in New York at US$15.56.
Canopy’s losses seemed to weigh heavily on the minds of Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) investors, who sent shares of the cannabis producer trading 9% lower in Toronto and 10% lower in New York at C$4.27 and US$3.20 respectively.
The Canadian producer will report its own quarterly results after market close Thursday.
On a day where flat was the new green, a few companies managed to see its shares buck the trend.
Zenabis Global Inc (TSE:ZENA) (OTCMKTS:ZBISF) saw its shares inch 1.4% higher in Canada after it posted quarterly revenue showing the cannabis producer narrowing its third quarter 2020 losses to US$5.8 million from US$18.4 million over the previous quarter.
The Vancouver-based company more than doubled cultivation from the previous quarter, producing more than 5,200 kilograms of dried cannabis and beating internal projections by 25%.
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