Last week was tough for cannabis stocks. Six of the nine cannabis companies considered for our analysis delivering negative returns. Last week, the New York Times reported that the Department of Health and Mental Hygiene ordered restaurants under its jurisdiction not to sell food products containing CBD. Eateries in New York aren’t allowed to add anything not proven to be safe, which includes CBD.
The crackdown on edible CBD products wasn’t restricted to New York City. Health officials in Maine and Ohio also asked eateries and retailers to remove CBD-infused edible products from their offerings. The crackdown on edible CBD products led to a fall in cannabis companies’ stock prices.
Stocks in the red
VIVO Cannabis (VVCIF) and Planet 13 Holdings (PLNHF) were impacted the most. On February 1–8, VIVO Cannabis (VVCIF) saw its stock price fall 21.8%, while Planet 13 Holdings (PLNHF) saw its stock price fall 18.9%.
During the same period, MedMen Enterprises (MMNFF), Green Organic Dutchman Holdings (TGODF), Wayland Group (MRRCF), and Acreage Holdings (ACRGF) saw their stock prices fall 9.6%, 8.6%, 4.1%, and 3.8%, respectively.
Stocks in the green
Despite weakness in the cannabis sector with the Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, falling 2.8% and the ETFMG Alternative Harvest ETF (MJ) returning -4.3%, Curaleaf Holdings (CURLF), iAnthus Capital Holdings (ITHUF), and Trulieve Cannabis (TCNNF) have returned 5.6%, 5.6%, and 3.3%, respectively.