Why Sundial Growers Stock Jumped Then Dropped Wednesday

Shares in Canadian cannabis company Sundial Growers (NASDAQ: SNDL) initially jumped almost 10% Wednesday morning after the company reported its first-quarter earnings update last night. But after investors had more time to digest the results, the stock reversed course. As of 12:35 p.m. EDT, Sundial shares were down 2.7% on the day.

Sundial Growers headlined its financial release by telling investors the quarter marked its "first positive quarterly earnings from operations in the company's history." The company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were the equivalent of approximately $2.7 million, the first positive quarter for that metric it has ever had. While that is a nice achievement, there were other results that don't paint as bright a picture.

Source Fool.com