There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively.
We'll begin with Charlotte's Web and its first-quarter earnings report released this morning. The self-described "market share leader in full spectrum cannabidiol (CBD) hemp extract wellness products" isn't looking particularly healthy itself today, after reporting only $23.4 million in Q1 sales (Wall Street was hoping for $27.4 million). Street analysts were also looking for a loss of $0.05 per diluted share for the quarter, but it turns out Charlotte's Web lost twice that: $0.10 per share. On the plus side, Charlotte's Web's cash burn rate declined significantly year over year, down 43% to just $9.4 million. But investors seem to be focusing more on the lower-than-expected sales today, and the higher than expected losses.
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Why Canopy Growth, Aurora Cannabis, and Charlotte's Web Stocks All Just Went Up in Smoke