PCG - Why Tilray Forescout Technologies and PG&E Slumped Today
Thursday was another good day on Wall Street, with major benchmark indexes posting solid gains. Most of the enthusiasm centered on hopes that trade war hostilities might diminish, but investors were also attempting to hone in on which industries would have the best prospects in the current economic environment -- and which would not. As a result, some out-of-favor market segments took hits, and company-specific bad news also led some stocks sharply lower. Tilray (NASDAQ: TLRY), Forescout Technologies (NASDAQ: FSCT), and PG&E (NYSE: PCG) were among the day's worst performers. Here's why their stocks did so poorly.
Shares of Tilray dropped 13%, hitting levels not seen since its first day of trading as a public company back in July 2018. Marijuana stocks have been under pressure for much of the year, and the latest bad news for the sector came from HEXO, which released weak preliminary fiscal fourth-quarter sales numbers. HEXO's problems stem from its disappointing performance in the Canadian market, which marijuana investors interpreted as reflecting systemic problems in the space that they expect must be hitting other cannabis companies as well. At this point, Tilray is trading just barely above the $17 per share at which it priced its IPO -- a sign of just how dramatic the pullback in pot stocks has been.
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