Today, the broader equity market was trading in the green. At 2:15 PM ET, both the S&P 500 Index and the Dow Jones Industrial Average were up 0.4% and 0.5%, respectively. Cannabis ETFs the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were up 0.7% and 0.4%, respectively.
ACB trades higher ahead of its earnings
Aurora Cannabis (ACB) is set to report its fourth-quarter earnings results after the market closes today. Last month, the company’s management provided better-than-expected guidance for the fourth quarter. Investor optimism surrounding its fourth-quarter earnings appears to have led to a rise in its stock price. At 2:15 PM ET, Aurora was trading 2.7% higher. For the quarter, analysts expect Aurora’s revenue to rise sequentially. They also expect the company’s EBITDA losses to improve compared to the third quarter. Read Aurora Cannabis: Investors Are Optimistic about Q4 Earnings for more info.
Cronos Group was down 2.5%
Altria Group, which owns a 45% stake in Cronos Group, also has a 35% stake in Juul Labs. Juul is a market leader in e-cigarettes. With the second phase of cannabis legalization set to hit the Canadian market later this year, investors were expecting Cronos to benefit from Juul Labs. However, the growing concern over vaping appears to have led to a fall in Cronos Group’s stock price. Read our recently published series Vaping Risks: Health Canada’s Warning, US Reports More Cases to learn more about the impact of vaping concerns on the cannabis sector.
Tilray is trading in red
Yesterday, Tilray announced its plans to issue $400 million worth of additional shares. Cowen and Company will assist the company in the stock sale process. Today, the company was trading over 2.0% down at 2:15 PM ET. The growing concerns over vaping could also have lowered Tilray’s stock price. The company reported its second-quarter earnings on August 13. In the quarter, it outperformed analysts’ revenue expectations. However, its net losses were higher than analysts’ expectations, which led to a fall in its stock price. YTD, the company’s stock has fallen 55.8%. For analysts’ opinions on Tilray, read Tilray: Are Analysts Optimistic about Its Stock?