If you are on the hunt for weed stocks, well, today's market index may disappoint. While the cannabis market is usually full of gainers, some of the biggest names are in the red, including Cronos Group and GW Pharmaceuticals.
Why all the price declines? Has news kick-started a wave of concern? Something has spooked investors, it seems.
Weed Stocks in Red
All the top ten weed stocks are in red at the time of writing. GW Pharmaceuticals (NASDAQ:GWPH) and Cronos Group (NASDAQ:CRON) are the two biggest losers, showing declines of 4.20% and 4.81% respectively.
Checking in with GW first, this company has gone from strength to strength in 2019, catching investor attention as it goes.
According to StockNews, analyst Michael Lavery at Piper Jaffray has said this week that "the outlook for medical cannabis is brighter than ever," furthering that the US market is "in dire need of a replacement for prescription opioids."
Precisely for this reason, Lavery recommends GW Pharmaceuticals and its cannabis-derived drug Epidiolex. This is the first cannabis-related drug to receive FDA approval.
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The company has nothing dictating its price decline today, so this most likely is a case of the entire market going through a wave of bearishness.
Weed Stocks: Cronos Group
The most recent news to come out of camp Cronos is that it handed over its stake in Whistler Medical to Aurora Cannabis (NYSE:ACB) two days ago.
In doing so, Cronos earned itself a cool $24.6 million CAD and a stock bump of over 10%. Investors seemed on board with the decision and so, again, today's decline is a result of a bearish wave permeating the market.
As with GW, Cronos has actually been on a bull run since mid-February. The CRON weed stock climbed from $19.55 to $23.70 USD before today's decline. At the time of writing, CRON is trading hands for $22.76 on the NASDAQ exchange.
Giving the market a wide berth for a day or two might not be the worst idea. The market will correct eventually, especially considering the overall impressive start to 2019. After all, some analysts estimate certain weed stocks to grow by 400% over the next year.
Featured Image: DepositPhotos © leungchopan
