Please ensure Javascript is enabled for purposes of website accessibility

Why Aurora Cannabis Stock Lost 30% in March

By Demitri Kalogeropoulos – Updated Apr 8, 2020 at 10:41AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors fled from riskier businesses as stock market volatility spiked last month.

What happened

Shares of Aurora Cannabis (ACB 4.07%) 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.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurora Cannabis Stock Quote
Aurora Cannabis
ACB
$1.28 (4.07%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.