On Wednesday, the cannabis industry went wild after the Constellation Canopy Growth announcement hit the market. On the news, the Canopy Growth stock surged more than 30%. And yet, the same stock opened Thursday's session in the red, currently down more than 3%.
Why the change of heart?
Constellation Canopy Growth Announcement Leads to Stock Drop: August 16, 2018
In case you missed it, let's recap what went down yesterday.
On August 15, news spread that Constellation Brands has agreed to buy shares directly from Canopy Growth (TSXV:WEED). More specifically, Constellation, which is a winery and Fortune 500 company, will acquire 104.5 million shares from the Canadian cannabis company.
As I said, the Constellation Brands Canopy Growth partnership sent the WEED stock soaring; it closed yesterday trading at $42.20.
Meanwhile, the news also did wonders for the rest of the cannabis industry. Aurora Cannabis (TSXV:ACB) saw some gains after the news was posted, increasing as much as 19% during the session.
But the streak of good luck didn't last long for Canopy Growth.
Canopy Growth Price Today
At press time, Canopy Growth is trading at $40.67 on the Toronto Stock Exchange, which puts the stock down 3.63%.
For perspective, the stock opened at $42.20 as well.
It's not just Canopy Growth that's down today, either. All of the parties involved are in the red zone today.
Constellation Brands Stock (NYSE:STZ)
According to Yahoo Finance, as of 9:42 a.m. EDT, Constellation is trading down 1.73%.
Aurora Cannabis
Aurora is also down today, less than 24 hours after surging nearly 20% on the Constellation Canopy Growth news.
As of 10:56 a.m. EDT, Aurora is trading at $6.25, which puts it down 2.04%.
The Takeaway
Overall, how do you feel about the Constellation Brands Canopy Growth partnership? I know it's a little surprising to see the Canopy Growth stock in the red, but don't let this cloud your thinking on the overall partnership. Good things are going to come.
Featured Image: Depositphotos/© gmac84
