Why Aurora Cannabis Stock Is Fading Today
Shares of Canadian pot giant Aurora Cannabis (NASDAQ: ACB) are under pressure Wednesday morning. Specifically, the pot company's stock was down by a noteworthy 5.4% on elevated volume as of 10:45 a.m. ET Wednesday.
What's causing investors to move to the sidelines today? Most U.S. equities are falling today in response to weaker-than-expected earnings from high-profile companies like Abbott Laboratories, Microsoft, and Intuitive Surgical. The bottom line is that the Federal Reserve's aggressive interest-rate-hike strategy, along with stubbornly high levels of inflation, appear to be having a chilling effect on consumer demand for goods and services.
What's the spillover for global cannabis companies like Aurora? While a fair number of cannabis users do view the plant as an essential medicine, these economic headwinds are having a negative impact on consumers' real buying power. That's bad news for discretionary items like recreational cannabis.
Source Fool.com
