Home etftrends.com Pot ETFs Surge After Aurora Cannabis’ High Sales During Coronavirus

Pot ETFs Surge After Aurora Cannabis’ High Sales During Coronavirus

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Marijuana sector-related exchange traded funds led the charge Friday after Aurora Cannabis (NYSE: ACB) revealed quarterly sales that beat expectations and highlighted a surge in demand on stockpiling in response to intensifying coronavirus outbreak.

Among the best performing non-leveraged ETFs of Friday, the ETFMG Alternative Harvest ETF (NYSEArca: MJ)advanced 7.7%, Cambria Cannabis ETF (TOKE) increased 4.2%, Global X Cannabis ETF (NASDAQ: POTX) surged 13.6%, AdvisorShares Pure Cannabis ETF (YOLO) gained 4.9%, Amplify Seymour Cannabis ETF (NYSEARCA: CNBS) rose 4.3% and The Cannabis ETF (NYSEARCA: THCX) jumped 6.7%.

Aurora Cannabis shares jumped 73.2% on Friday, breaking above its short-term resistance at the 50-day simple moving average.

While Aurora said the pandemic would likely reveal a greater effect on business in the fourth quarter, the coronavirus so far did not “materially disrupt” operations in the third quarter, Investor’s Business Daily reports. It pointed out that customers stocked up in March in anticipation of the broad shutdown measures, but the trend cooled off in April.

Additionally, its facilities in Canada and abroad were still up and running.

Aurora revealed net sales of 75.5 million Canadian dollars, or up 35% quarter-over-quarter. Cannabis net sales also increased by 32% to 69.637 million Canadian dollars.

Recreational cannabis sales also stood out, climbing 24% to 41.5 million. The company attributed the gains to “the impact of the launch of Daily Special,” a cheap weed brand, along with newer products like vapes and edibles. The released cheaper cannabis brands helped better compete with the illegal market.

Looking ahead, Aurora projected it was “on track” to reach positive EBITDA by the first quarter of its fiscal 2021.

The company also noted that it will be prioritizing market share as opposed to revenue goals, Business Insider reports.

“The variables associated with the COVID-19 pandemic and the still-developing Canadian consumer market, including consumer buying behavior and new store rollout, have led Aurora to focus on market share for the near term, rather than revenue targets, to manage the business,” Aurora said in a statement.

For more information on the marijuana industry, visit our cannabis category.

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