Why Top Marijuana Stocks Are Sinking Today
Shares of top Canadian marijuana stocks were sinking Monday morning in the wake of a massive overall stock market sell-off fueled by continued coronavirus worries and plunging oil prices. Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY) stocks were hit the hardest, with shares tumbling 7.7% and 8.3%, respectively, as of 10:38 a.m. EDT. Shares of Canopy Growth (NYSE: CGC) were falling 6.5% lower. Cronos Group (NASDAQ: CRON) and OrganiGram Holdings (NASDAQ: OGI) stocks were down 4.7% and 3.6%, respectively.
Do the coronavirus outbreak and lower oil prices really hurt the business prospects for the leading Canadian cannabis producers? Probably not very much. It's possible that some of the companies that buy products such as vape devices that are made in China could be negatively impacted if Chinese manufacturing is disrupted. On the other hand, lower oil prices should also lead to lower shipping costs for cannabis companies.
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Source Fool.com
