Why Shares of Canopy Growth Sank 18.7% This Week
Canopy Growth Corporation (NASDAQ: CGC), one of the largest cannabis companies in Canada, saw its stock plummet 18.7% this week, according to data from S&P Global Intelligence. The stock closed last Friday at $2.62 per share then fell to $2.16 on Wednesday.
But the share price improved a bit on Thursday, hitting $2.46 after it was reported that U.S. Senate Democrats planned to introduce legislation to decriminalize marijuana at the federal level. While the news is good for all cannabis stocks, any decriminalization faces long odds of passing in an evenly divided Senate. Canopy Growth stock now has a 52-week low of $2.13 and a 52-week high of $20.73.
The stock is down more than 74% this year, so another bad week was hardly a surprise for investors. The overall cannabis market has been hit hard -- the AdvisorShares Pure Cannabis ETF is down more than 57% this year -- but Canopy Growth's problems go even deeper.
Source Fool.com
