Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Pot Takes a Hit as Aurora Cannabis Forecasts Weak Quarter

Published 24/09/2020, 04:16 am
©  Reuters
WEED
-
APHA
-
ACB
-

By Christiana Sciaudone

Investing.com -- Pot may be losing its potency. U.S.-listed Aurora Cannabis (NYSE:ACB) tumbled 25% after reporting weak sales guidance. 

Cannabis net revenue for the first quarter of 2021 is expected to be between C$60 million and C$64 million, compared to C$67.56 million in the fourth quarter. In the fourth quarter a year earlier, Aurora reported cannabis net revenue of C$94.6 million.

The company expects adjusted gross margin before fair value adjustments on cannabis net revenue to be within a range of 46% to 50% and SG&A costs in the low C$40 million range. 

Aurora reported a 4.5% quarter-on-quarter decline in fourth quarter net revenue to C$72.11 million.     

Shares are down 79% in 2020.

Rivals also fell on the news, with Canopy Growth (NYSE:CGC) down 10%, Aphria (NASDAQ:APHA) lower by 3% and Cronos decreasing by almost 6%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.