What happened
On general marijuana stock malaise, Green Thumb Industries (GTBIF 0.31%) was down more than 13% late Friday compared to its closing price a week ago Friday.
So what
Unless there is a standout development for a particular weed stock, as a group their prices often move in concert. That's been the dynamic this week, with both top operators and smaller rivals generally declining.
Image source: Getty Images.
As with other weeks and even months this year, there wasn't much industry-shaking news affecting weed over the past few days.
And that could very well be the problem. The Cannabis Administration and Opportunity Act has been introduced in the U.S. Senate but hasn't yet moved through the pipeline (and likely won't, given most Republicans' resistance to drug law reform).
Meanwhile, in contrast to the dynamic earlier in 2021, state legislatures don't currently seem to be in a hurry to flip the switch on marijuana legalization.
Another new drag on the cannabis industry might be a study published Tuesday in The Canadian Medical Association Journal that indicates young marijuana-using adults suffer from heart attacks more often than people in the general population.
Now what
Because of this, Green Thumb stock is being unfairly punished by investors.
The company is actually doing quite well. Its second-quarter 2021 results reveal that it was profitable -- a rare feat among weed companies these days -- with a bottom-line surplus of over $22 million, on revenue that grew 85% year over year to nearly $222 million. Meanwhile, Green Thumb continues to add scope and scale with new dispensaries, and still has a decent-sized pile of cash to grow even larger.
