Aphria (NYSE:APHA) ended the week on a strong note. Shares of the Ontario-based cannabis company climbed by 11.3% on Friday, despite the company not reporting any news.
The catalyst for Aphria's stock rising today seems to be the better-than-expected financial results Aurora Cannabis (NYSE:ACB) -- one of Aphria's peers in the marijuana industry -- reported after the market closed on Thursday. Aphria is simply riding the positive wave started by its competitor.
There was little hope that Aurora Cannabis would be able to deliver strong financial results, especially after Tilray (NASDAQ:TLRY) -- another big player in the marijuana industry -- disappointed with its own earnings report. However, Aurora Cannabis's net revenue of CA$78.4 million (excluding provisions of 2.9 million Canadian dollars) came in higher than the 66.7 million Canadian dollars analysts were expecting.
The cannabis company's total net revenue also increased by 35% sequentially. These results -- which are especially noteworthy considering the ongoing crisis -- may have helped investors regain a little trust in the cannabis industry, which has been profoundly disappointing over the past year or so.
For its part, Aphria has consistently delivered strong financial results of late, especially when compared to its peers in the cannabis industry. For instance, in its most recent quarterly update, the company recorded a net revenue of 144.4 million Canadian dollars, a 19.8% sequential increase. Even with its gains on the market today, though, Aphria's stock is still down by more than 30% year to date. This presents a decent buying opportunity for investors looking to buy shares of this cannabis company.