Why Aurora Cannabis Stock Soared 59% in May

Shares of Aurora Cannabis (NYSE: ACB) surged 59% last month, according to data provided by S&P Global Market Intelligence. The marijuana producer delivered better-than-expected third-quarter results and entered a major new market.

Aurora's shares rocketed higher on May 15, following the release of its fiscal third-quarter financial report. Its net revenue, excluding provisions, jumped 18% sequentially to CA$78.4 million, driven by strong growth in recreational and medical cannabis sales. That was well above the CA$66.7 analysts expected. The news is believed to have ignited a short squeeze; many short sellers who bet against Aurora's stock were likely forced to buy shares in order to close their positions, thereby helping to drive the price higher.

Aurora Cannabis stock rose sharply in May. Image source: Getty Images.

Source Fool.com