What happened

Shares of Aurora Cannabis (ACB -3.50%) underperformed the market last month, falling 30% compared with a 12.5% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.

That slump added to a rough run for owners of the pot stock, who are down over 60% since the start of the year.

A shopkeeper shows off a handfull of cannabis.

Image source: Getty Images.

So what

Aurora Cannabis was caught up in the general market turmoil around COVID-19 and related containment measures, which have ground commerce to a standstill in key industries like travel and in major economies across Europe and North America. The company joined its peers in sinking last month as volatility picked up and investors avoided stocks with weaknesses such as unprofitable business models and high levels of debt.

Now what

Aurora faces significant challenges over the short term, including a potential delisting by the New York Stock Exchange for trading below $1 per share. Yet the long-term path of the stock will depend more on management's ability to get its business operating in the black even as competition in the marijuana industry remains fierce.