Please ensure Javascript is enabled for purposes of website accessibility

Why Sundial, Aurora Cannabis, Aphria, and Other Marijuana Stocks Plunged Today

By Joe Tenebruso - Feb 23, 2021 at 9:05PM

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

Pot stocks surrendered some of their recent gains amid a broad market sell-off.

What happened

Cannabis stocks plummeted on Tuesday morning before rebounding later in the day. Here's how some of the most popular marijuana stocks fared: 

  • Sundial Growers (SNDL -6.98%), down 11.9%
  • Aphria (APHA), down 6.7%
  • Tilray (TLRY), down 5.7%
  • Cronos Group (CRON -5.26%), down 4.8%
  • Aurora Cannabis (ACB -8.05%), down 4.8%
  • Canopy Growth (CGC -3.05%), down 4.6%
  • HEXO (HEXO -3.73%), down 4%

So what

Weed stocks have been popular trades in 2021. The prospect of marijuana legalization in the U.S. has led investors to bid up the prices of many cannabis companies in recent weeks.

A list of declining stock prices.

Pot stocks fell hard on Tuesday. Image source: Getty Images.

Today, however, many traders decided to sell their marijuana stocks and take some profits off the table. There wasn't much in the way of news that appeared to spark the sell-off, other than a general decline in the stock market averages and a relatively steep drop in the prices of many higher-risk stocks.

Now what

Cannabis stocks can be extremely volatile; that's part of the allure for traders who want to generate quick gains. Volatility cuts both ways, though, and it can be brutal when stocks move violently to the downside.

Fortunately, Sundial, Aphria, Tilray, Cronos, Aurora, Canopy, and HEXO all recovered most of their losses by the close of trading after being down between 13% to 23% earlier in the day. Perhaps investors began to once again focus on recent progress toward legalization, such as New Jersey's move to permit sales of recreational marijuana in the state. 

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

Sundial Growers Inc. Stock Quote
Sundial Growers Inc.
$0.34 (-6.98%) $0.03
Aurora Cannabis Stock Quote
Aurora Cannabis
$1.37 (-8.05%) $0.12
Canopy Growth Stock Quote
Canopy Growth
$3.50 (-3.05%) $0.11
Cronos Group Stock Quote
Cronos Group
$2.88 (-5.26%) $0.16
HEXO Stock Quote
$0.20 (-3.73%) $0.01
Tilray Stock Quote
Aphria Stock Quote

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

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.