Cannabis Stock Report: Pot Stocks Falter As Facebook Troubles Deepen

The North American Marijuana Index fell on Tuesday with pot stocks sliding in what continues to be a volatile market. CanniMed Therapeutics (TSX:CMED) announced their first quarter results, with sales coming in 41 percent higher than the same period last year at $4.8 million. Still, the news did nothing to buoy the market as weed stocks continued their fickle nature on Tuesday; a product of market corrections and ongoing legal battles. The Index lost 6.00 points, a decline of 2.27 percent, to close out Tuesday at 258.83.

The United States Marijuana Index fell 1.93 points, or 2.43 percent to close out the day at 77.64, while up north in Canada marijuana stocks tumbled 17.47 points, a decline of 2.26 percent, to close out Tuesday at 756.69.

Wall Street rallied slightly on Tuesday as oil prices gained, but the overall markets were again brought down by social media titan Facebook. The continued fallout over the Russia scandal sent the stock down 2.6 percent, with total losses at 9.0 percent for the past two trading sessions. At the heart of the controversy are questions about how data firm Cambridge Analytica gained access to user data during the 2016 presidential election and, furthermore, why the tech giant failed to inform its user base.

"The negative part would be they are going to haul them in front of Congress now and we’ll see do they create new laws, are there new regulations that could stunt the growth of the company? That is really what the fear is," said Joe Saluzzi, co-manager of trading at Themis Trading in an interview with Reuters.

The Dow Jones Industrial Average rose 116.36 points, gaining 0.47 percent, to close the day at 24,727.27. Meanwhile, the S&P 500 gained 4.02 points, a gain of 0.15 percent, to 2,716.94 and the Nasdaq Composite jumped 20.06 points, a gain of 0.27 percent, to end the day at 7,364.30.

The Horizons Marijuana Life Sciences ETF (HMMJ.TO) fell CAD$0.40 per share, a decline of 2.06 percent to close out the day at CAD$19.04 per share. Evolve’s Marijuana ETF fell CAD$0.41 or 2.01 percent to close out Tuesday at CAD$19.99.

Quick Hits

Nuuvera Inc. (TSXV:NUU) and Aphria Inc. (TSX:APH) announced on Tuesday that Nuuvera shareholders overwhelmingly approved the plan to have Aphria acquire the company… Emblem Corp. (TSXV:EMC) (EMC.WT) sent a letter to its shareholders on Tuesday… The Hydropothecary Corporation (TSX-V:THCX) signed a deal with Shopify to power their e-commerce platform for cannabis sales.

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