Cannabis Stock Price Drops — What’s Happening In The Industry?
The cannabis stock price drops we’re seeing at this point are disheartening, to say the least. So what gives? Why is there such a drastic drop in cannabis stock price? Is it something someone did? Is it something someone said? Let’s go over the facts.
According to MarketWatch, a confirmation hearing on Tuesday included a damning statement from attorney general nominee, William Barr. He is quoted discussing how the current system treats marijuana laws, stating the system is ‘untenable.’
After his brief statement, Barr discussed his own disdain for the cannabis industry, claiming he is in support of prohibiting cannabis throughout the United States. Even with this statement, Barr went on to touch upon how he does not plan to bother with any cannabis businesses complying with state regulations.
Barr’s comments may have spurred drops in cannabis stock price throughout the market. We saw ETFMG Alternative Harvest ETF MJ drop by 3.23 percent. This includes some of the most well-known and established cannabis stocks. In just 15 minutes, the market’s fall was around 3 percent.
The cannabis sector experienced some other serious decreases that may or may not be relating to Barr’s statement. One of these companies, Canopy Growth Corp., CGC, closed nearly 3 percent down from its opening price. Another company, Aurora Cannabis Inc. experienced a high of around 11 percent gain, but later on in the day, the company closed down 3.2 percent. Comparable to both of these companies, Cronos Group Inc. experienced a downward shift, closing the day down 5.2 percent.
All in all, cannabis stock price will go up and down as the industry becomes better established. Even with this being the case, some fluctuation should be expected in an industry that’s just getting its footholds. We expect the cannabis industry to continue its growth despite politician statements potentially influencing cannabis stock price.