Why Cronos Group, Globant, and Fortuna Silver Mines Slumped Today
Stocks did well on Friday, finishing the week on a positive note as investors seemed more comfortable with the geopolitical and macroeconomic issues facing the financial markets. With most major benchmarks at or near record highs, it was hard to find a lot of bad news, but a few companies had to deal with challenges that sent their share prices lower. Cronos Group (NASDAQ: CRON), Globant (NYSE: GLOB), and Fortuna Silver Mines (NYSE: FSM) were among the worst performers. Here's why they did so poorly.
Shares of Cronos Group dropped 8% as the marijuana stock sector continued to get hit hard by lackluster earnings. It wasn't Cronos that delivered poor results but rather Aurora Cannabis, which disappointed its shareholders with substantial declines in sales in its most recent quarter compared to three months earlier. However, Cronos raised similar concerns earlier in the week, as its positive net income was entirely due to accounting treatment of the ownership stake that Altria Group has in Cronos. With cannabis prices falling, especially among marijuana extract products, it could be a long time before Cronos and its peers get their momentum back.
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Source Fool.com
