Cannabis stocks dropped Thursday after famed short-seller Andrew Left’s Citron Research published a “reality check” for Canada-based weed company Cronos Group Inc. and the rest of the sector and a new report detailed a federal effort to fight marijuana legalization.
Cronos CRON, +0.11% stock fell roughly 29% in Thursday trading, as Canada-based rivals Tilray Inc. TLRY, +1.34% slid 6.4%, and Canopy Growth Corp.CGC, +0.72% fell 3.8%. The S&P 500 index SPX, -0.44% was down 0.1% Thursday.
Cannabis stocks have rampaged in recent days — described by one investor as similar to a bitcoin BTCUSD, -0.06% surge — after a flurry of news related to beverage-company interest in weed: After Corona-maker Constellation Brands Inc. STZ, -0.24% announced a $4 billion investment in Canopy, a report said that Smirnoff-maker Diageo PLC DEO, -0.46% was eyeing a similar investment or partnership in three other Canadian pot firms.
Top photo courtesy of Adobe Stock