Cannabis industry took a big hit on Monday, A few major marijuana stocks were all down, which include Tilray was 13%, Aphria was 14%, Aurora Cannabis was 9%, Cronos Group was 8%, Canopy Growth was 5% and Sundial Growers was 7%. A wave of red tide appears and cannabis investors are asking, what's going on?
Aphria yesterday reported its third quarter fiscal year 2021 financial results that seems to tell us some things. Aphria's net revenue just got an increase of 6.4% from the same period last year and its cannabis gross profit also declined. The company acknowledged that the decline was due to the ongoing effects of COVID-19, which resulted in decreased orders.
Aphria said in the report that the duration and impact of lockdowns across many of the regions they operate in, particularly in Canada, were greater than they initially anticipated for the cannabis industry and its business.
The bad news from Aphria also hurt the rest stocks of the cannabis industry. In fact, investors are concerned about the sales prospects of all cannabis companies. In the U.S., the issues about the legalization of marijuana still have no schedule at the federal government level. Weak sales outside of the U.S. may make investors lose hope in short term. So for cannabis investors, a wait-and-see may be the best strategy right now.
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