Why Curaleaf Stock Got Crushed by the Market Today

Few investors were fired up about cannabis multi-state operator (MSO) Curaleaf Holdings (OTC: CURLF) on Wednesday. On the back of a dispiriting report from a prominent marijuana news site, the company's shares dived by nearly 6%, a far steeper fall than the 1% drop of the S&P 500 index.

To be clear, the article published that day in MJBizDaily.com was not specifically about Curaleaf. Rather, it addressed cannabis industry pricing across the broader North American market, and its conclusion is sobering -- both U.S. retailers like Curaleaf and their Canadian counterparts have been increasingly and aggressively discounting their products.

Surveying the price developments of marijuana flower in states where recreational pot has been legal for some time, the report indicated that on average, discounts in certain U.S. states can approach nearly 25%. Both Washington and California have rates between that rate and 25%, while highly weed-friendly Oregon, Colorado, and Nevada dispensaries are discounting at rates slightly above and below the 15% mark.

Source Fool.com