VFF - Why These Canadian Marijuana Stocks Plunged Today
Several Canadian marijuana stocks plunged on Friday as worries about the novel coronavirus, COVID-19, caused the major market indexes to fall. Shares of the biggest Canadian cannabis producer, Canopy Growth (NYSE: CGC), were down by 10.5% as of 3:02 p.m. EST. Shares of Aurora Cannabis (NYSE: ACB) were sinking by 11.5%. Village Farms (NASDAQ: VFF) and Emerald Health Therapeutics (OTC: EMHTF) stocks were falling by 11.2% and 11.6%, respectively.
What does the coronavirus outbreak and the spread of COVID-19, the disease caused by the novel coronavirus, have to do with marijuana stocks? Not very much.
Some companies that sell vape products manufactured in China could be impacted by disruptions to the country's economy. It's also possible that retail cannabis sales could be negatively affected if consumers choose to stay home due to fears about being infected by the coronavirus.