Why Aurora Cannabis, HEXO, and Sundial Growers Are Moving Down TodayPosted by On

What happened

Marijuana stocks had been soaring since the U.S. election, but the last five days have marked a reversal. After an earlier drop of 10%, shares of Aurora Cannabis (NYSE:ACB) were down 5% as of 1:45 p.m. EST. HEXO (NYSE:HEXO) shares are down 9%, and Sundial Growers (NASDAQ:SNDL) 18% at the same time. 

The stocks of the three companies have risen between 60% and 200% just since the election. But each is down double digits in the past week as well as since the start of 2020. 

So what 

The surge hasn’t compensated for what’s been a rough year for cannabis stocks. And there are fundamental reasons why shares in companies like Aurora are down sharply this year. 

pot leafs and stock market chart with red arrow pointing down

Image source: Getty Images.

Aurora spent much of this year restructuring its business and raising capital as it incurred growing losses. The changes included cutting jobs, consolidating production, and selling additional stock to raise money. Even with its pop since the election, shares are down about 60% since the start of the year. 

The only real news today came from HEXO. In late October the company proposed a reverse stock split to enable the stock to remain in compliance with the minimum standards of the New York…

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