Why Aurora Cannabis, Abiomed, and Gulfport Energy Slumped Today
Monday was relatively quiet on Wall Street, with major benchmarks' early losses largely fading away by the end of the trading session. Investors continued to wrestle with a variety of long-term issues, and in the absence of any resolution on key macroeconomic and geopolitical issues, many stocks continued to tread water. Yet a few companies had bad news that sent their share prices significantly lower. Aurora Cannabis (NYSE: ACB), Abiomed (NASDAQ: ABMD), and Gulfport Energy (NASDAQ: GPOR) were among the worst performers. Here's why they did so poorly.
Shares of Aurora Cannabis dropped 17%, adding to its recent losses. The marijuana sector had a lot of trouble last week, as company after company had poor earnings results that cast doubt on the entire long-term investing thesis for the industry. For Aurora, news late last Thursday that it had decided to stop construction activity at two of its facilities, including the Nordic 2 project in Denmark and its Aurora Sun facility in Canada, pointed to the need to conserve capital. Investors might be slow to get back into shares of Aurora and its cannabis peers until the marijuana growers can demonstrate their next pathway to growth and consistent profitability.
Image source: Aurora Cannabis.
Source Fool.com
