The market crash hit the bull market’s cult trends like pot and alternative meat hardest

 

·         Cult trend stocks of the bull market, such as cannabis and alternative meat, are plummeting even more than the rest of the U.S. market.

·         From highs hit in the past year, Tilray is down 96%, Aurora Cannabis is down 93%, Canopy Growth is down 81% and Cronos Group is down 78%

·         These stocks have also been some of the most popular names among young investors, with Beyond Meat and Aurora Cannabis in the past year ranking as the most widely-held stocks by millennials.

 

Michael Sheetz, CNBC

Mar 17 2020

 

Some of the hottest stocks of the last couple years have been hit especially hard in this coronavirus market collapse as investors shed all risk taking.

 

Cult trend stocks of the bull market, such as cannabis and alternative meat, are plunging even more than the rest of the U.S. market. In fact, five of the six stocks with the biggest drops from recent highs fall in those two nascent industries.

 

These stocks have also been some of the most popular names among young investors, with Beyond Meat and Aurora Cannabis in the past year ranking as the most widely-held stocks by millennials. Crazy trading in speculative stocks is a characteristic of a “late cycle” bull market, which came screeching to a halt just a few weeks ago.

 

The S&P 500 is down more than 26% from its most recent high. But that’s not nearly as bad as the drops from the record levels by some of the biggest names in cannabis — Tilray is down 96%, Aurora Cannabis is down 93%, Canopy Growth is down 81% and Cronos Group is down 78%. Recent cuts to capacity in Canada have compounded a slowdown in growth for the industry, as Bank of America highlighted a cut by Canopy Growth took away nearly nearly a fifth of the industry’s capacity.

 

“It’s a big deal, by our estimates the shuttering of ~20% of total Canada licensed production capacity. Importantly, it could spur others to take similar action, as some have feigned recently,” Bank of America said.

 

The alternative foods company Beyond Meat is another of the hardest hit, having fallen about 73% from highs it hit in the past year...

 

more, including links

https://www.cnbc.com/2020/03/17/the-market-crash-hit-cult-trend-stocks-like-pot-and-alternative-meat-hardest.html