- NASDAQ:SNDL fell by 8.76% during Monday’s trading session.
- Cannabis stocks are in trouble ahead of another looming interest rate hike.
- Another analyst downgrade hits a Sundial Growers domestic rival.
UPDATE: Sundial Growers stock has lost the 30 cents level. After surpassing the range low on May 12 of $0.3412 last week, $0.30 was the last hope for bulls. This was the level that may have held up due to it being a psychological round number – at least for a penny stock. SNDL shares have richoted violently between $0.2921 and $0.3070 during the Tuesday morning session. 474 call contracts for the $0.50 strike price expiring on July 29 exchanged hands during the session for a price of $0.02. Even still, this one is running on fumes. Support is at $0.24 and $0.15, and SNDL looks like it will reach each of those levels this year.
NASDAQ:SNDL plummeted during Monday’s market sell off as the former meme stock hit a new 52-week low price, briefly dipping below $0.30 during intraday trading. Shares of SNDL fell by a further 8.76% and closed the trading session at $0.30. The loss makes it five straight losing days for Sundial, as the stock continues to fall further below the key $1.00 mark for NASDAQ listings.
Stocks continued to tumble on Monday as the fallout from the higher than anticipated inflation rate in May extended through the weekend. The Dow Jones plummeted by 876 basis points, the S&P 500 sank back into bear market territory with a 3.88% loss, and the NASDAQ dropped lower by 4.68% during the session.
Cannabis stocks continue to be some of the biggest losers on Wall Street during this ongoing market weakness. The Global X Cannabis ETF (NASDAQ:POTX) fell by 8.8% on Monday, bringing its year to date losses to 55% overall. Tilray (NASDAQ:TLRY) lost a further 7.69%, while Aurora Cannabis (NASDAQ:ACB) dropped by 11.43% as both stocks hit a new 52-week low closing price alongside Sundial.
Sundial stock forecast
Given the recent performance of cannabis companies, Wall Street analysts have been hard at work on issuing stock downgrades for the industry. On Monday, Jefferies Financial Group issued a fresh downgrade for Canopy Growth (NASDAQ:CGC), although the price decrease was officially given for the Toronto Stock Exchange version of the stock which trades under TSE:WEED. Jefferies lowered its price target from $8.00 to $5.50 CAD. Canopy Growth fell by 9.05% on the TSX to close at $4.22 CAD on Monday.
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