Posted in Cannabis Stocks

Cannabis Stocks: Why GRWG, SNDL, CGC, TLRY, APHA Stocks Are Getting Smoked

 Posted by  Posted on April 12, 2021

a close up of a tree: A close-up shot of a marijuana growhouse. © Source: Shutterstock A close-up shot of a marijuana growhouse.

Cannabis stocks are off to a rough start this morning after industry giant Aphria (NASDAQ:APHA) failed to deliver satisfying numbers in its fiscal Q3 report. The news has squashed positive sentiment around APHA stock and, by conjunction, Tilray (NASDAQ:TLRY) stock. However, many other cannabis stocks are facing downward pressure today. What gives?

a close up of a tree: A close-up shot of a marijuana growhouse. © Provided by InvestorPlace A close-up shot of a marijuana growhouse.

Aphria’s fiscal report did little to satisfy investors. The company missed its revenue goal by about 8 million CAD, it reported net losses of 1.14 CAD per share, and it generally failed to live up to expectations. This is a bad look ahead of its merger with Tilray.

APHA stock is down 13% today, trading at $14.17, and TLRY stock has fallen over 11% to $17.49.

Much of these bad stats have been chalked up to the pandemic. With limited inventory due to lockdown and lack of proper consumer access, many businesses have obviously suffered. Aphria exposed just how hard the cannabis industry has been hit by the novel coronavirus’ second wave.

Gallery: DISCB and 6 Other Reddit Stocks Waiting for a Short Squeeze (InvestorPlace)

a close up of a person holding a cell phone: If there’s any lesson to be learned about the novel coronavirus as it relates to the investment market, it’s that the old guard is on the cusp of change. Prior to the pandemic, one of the biggest debates between analysts was the tug-of-war between the fundamental and technical approach. Today, we need to add a new methodology: analyzing the chatter behind Reddit stocks. Laugh all you want. The power of the internet has more than proven itself, driving to the forefront the concept of the meme stock. In fact, a few Wall Street hedge funds took a beating over the short positions they took on certain embattled companies. Then came a wave of bullish hornets swarming in, devastating the bears. The era of Reddit stocks had arrived. Moreover, this might not be a one-and-done phenomenon. As you know, millennials grew up during the advent of the internet. All members of Generation Z know nothing but digitalization. Therefore, to these folks -- that is, the relevant generations -- betting on Reddit stocks is second nature to them, just like hard candy is to baby boomers. The 8 Biggest Growth Stocks of the First Quarter But it’s not just the chatter that you find on social media platforms that drive valuations. True, some Reddit-inspired plays are garbage, pure and simple. However, others have serious catalysts linked to them that could result in hefty gains. Here are seven Reddit stocks to keep on your radar: Marathon Oil (NYSE:MRO) cbdMD (NYSEAMERICAN:YCBD) MindMed (OTCMKTS:MMEDF) Spectrum Pharmaceuticals (NASDAQ:SPPI) CEL-SCI (NYSEAMERICAN:CVM) Quizam Media Corp (OTCMKTS:QQQFF) Castor Maritime (NASDAQ:CTRM) Of course, none of this is meant to be comprehensive research. While wagering on popular social media trades is fun, you want to make sure that you got the fundamentals squared away. Please perform your due diligence before engaging in any of these Reddit stocks.

As a result, many other cannabis stocks are going down in sympathy this morning.

Slowpoke Attitude on Legalization Punishes Cannabis Stocks

Consumer sentiment toward cannabis stocks is souring in the wake of the pandemic. But, there is another factor at play. The industry is in a sort of purgatory as the U.S. federal government drags its feet on legalization. Many investors are getting fed up with its failure to capitalize on the Democrat-controlled White House and Congress. Will lawmakers actually legalize recreational use?

Today, Aphria gave investors an inside look at how the second half of 2020 hit cannabis stocks. Now, investors may anticipate other cannabis plays to reveal similar results. A number of plays are suffering this morning in sympathy with APHA stock. Reddit-favorite Sundial (NASDAQ:SNDL) is below the $1 mark yet again after losing 5.5% today. GrowGeneration (NASDAQ:GRWG) stock is seeing a similar downturn, dropping by 5% to $51.41. Canopy Growth (NASDAQ:CGC) has dropped 4.5% to $27.70.

Keep these moves on your radar today.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Author: CSN