Share prices of large cannabis companies fall in last week of presidential campaign
The market caps of Curaleaf Holdings, Green Thumb Industries, Canopy Growth Corp., Cronos Group, Tilray, and Aurora Cannabis declined over the past five days of trading.
Photo by Dimitri Bong/Unsplash
Even though a more marijuana-friendly U.S. president may soon be elected, this didn’t boost the wealth of weed investors in the final week of the campaign. In fact, share prices of most large cannabis companies tumbled, including Curaleaf Holdings, Green Thumb Industries, and Canopy Growth Corp.
Wakefield, Massachusetts-based Curaleaf has the highest revenues of the publicly traded weed companies. Its share price fell nearly 1.6 percent this week to close the week at $9.38 on the Canadian Securities Exchange. Curaleaf is now worth $5.05 billion.
Its stock rose closer to the end of the week after MKM Partners analyst Bill Kirk boosted his rating from “neutral” to “buy”. He predicted that Curaleaf’s share price will reach $14 as a result of a weed legalization ballot initiative in New Jersey.
In addition to New Jersey, voters in Arizona, South Dakota, and Montana will vote on proposals to legalize cannabis.
Another large U.S. weed company is Green Thumb Industries. The Chicago-based corporation also trades on the Canadian Securities Exchange, with a market cap of $3.4 billion.
This week, Green Thumb shares went into a slight tailspin, dropping by 2.6 percent to close at $20.85 on Friday.
Meanwhile, the world’s most valuable publicly traded cannabis company also saw a slight decline in its stock price in the week before the U.S. presidential election.
Canopy Growth Corp. shares were down 2.46 percent on the week, closing in Toronto at $25.03 on Friday (October 30). The Smith Falls, Ontario–based company’s market cap stands at $9.29 billion.
Stock prices of other large cannabis companies fell even further.
For example, Toronto-based Cronos Group’s share price plunged 6.7 percent over the week. It closed in Toronto at $7.07 on Friday.
Cronos Group’s market cap stands at $2.47 billion.
Aphria shares buck the trend of other large cannabis companies
The share price of Aphria Inc., on the other hand, rose ever so slightly on the week. The large Leamington, Ontario–based weed company closed on Friday at $5.99 in Toronto, up $0.04 from its price at the opening bell five days earlier.
Aphria is worth $1.73 billion.
Investors in Tilray weren’t nearly as fortunate. That’s because the Nanaimo-based weed company share price declined by a whopping 14.1 percent on the week.
Tilray shares closed at US$5.71 on NASDAQ, leaving it with a market cap of US$726.18 million. In Canadian currency, that’s $967.78 million, taking it out of Canada’s billion-dollar cannabis club.
Another large ex-member of the billion-dollar club, Aurora Cannabis Inc., also endured a tough week. The share price of the Edmonton-based licensed producer fell by 11.7 percent.
Aurora Cannabis shares closed at $5.38 on Friday in Toronto. That left it with a market cap of $653.83 million, far lower than other big cannabis companies.
Democratic presidential candidate Joe Biden has promised to decriminalize possession of cannabis at the federal level. In addition, he’s pledged to expunge records of those convicted of cannabis possession.