Why Marijuana Stocks Aurora Cannabis, HEXO, and Charlotte's Web Went Up in Smoke Today

What happened

Last week, Kamala Harris pledged that if elected, the Biden administration would decriminalize marijuana. Many weed stocks popped on that pronouncement.

That was then; this is now. Marijuana stocks had an awful Thursday. Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide.

Hand holding a burning marijuana cigarette.

Image source: Getty Images.

So what

The bad guy in this story is their peer, Canadian producer and supplier Aphria (NASDAQ: APHA). Before market open, Aphria published its results for the first quarter of fiscal 2021.

As is habitual in corporate marijuana, Aphria booked a net loss, although that was actually a bit narrower than analyst estimates.

The problem was revenue, which fell short of projections and was down on a sequential basis. Aphria said the culprit was the coronavirus pandemic, which dampened the market for any unrelated health need, such as medical marijuana. This had a deleterious effect on its distribution revenue.

Now what

Aphria's poor showing is about the 50th stark illustration of the woes of the cannabis industry. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado).

Marijuana stock investors are a hardy bunch, but many find these frequent reminders of struggle dismaying. Their patience might be wearing thin.

Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.

Simply click here to get the full story now.

Learn more

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte's Web and HEXO. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More