Could Aurora Cannabis Fall Below $1 in 2020?
Down 80% since mid-March, the most popular marijuana stock is now clinging to a $2 share price.
Dec 27, 2019 at 7:21AM
In just a matter of days, we'll be closing the curtain on 2019, which turned out to be an incredibly good year for the broad-based markets, and an abysmal year for marijuana stock investors.
Everything began well, with cannabis stocks leading the charge throughout the first quarter. But the wheels, and everything else that wasn't welded on, soon fell off the wagon. Persistent supply issues throughout Canada, high tax rates in a number of recreationally legal U.S. states, and a resilient black market have made investing in pot stocks particularly painful in 2019.
For example, the most popular stock on online investing platform Robinhood, Aurora Cannabis (NYSE:ACB), has shed 80% of its value since peaking in mid-March. And note, I don't mean most popular pot stock -- I mean the most-held stock, period, on the entire platform. At just $2 a share, the company probably looks like a bargain to the nearly 10% of Robinhood members who currently own it.
But looks can be deceiving, and while it might sound far-fetched, Aurora Cannabis' stock could fall another 50% in 2020 and potentially dip below $1 a share.