Marijuana stocks took another broad beating on Tuesday, with the sector headed for a sixth straight loss.
The Horizons Marijuana Life Sciences exchange-traded fund HMMJ, -5.77% dropped 10%, with all 48 components trading lower, a day after it suffered its biggest-ever one-day decline. A six-session losing streak would be the longest since the seven-day stretch ending June 9, 2017.
The ETF has now lost 30% during its current losing streak, the worst six-day stretch since its inception on April 4, 2017.
The ETFMG Alternative Harvest ETF MJ, -2.81% slumped 7.8%, and was also headed for a sixth-straight loss.
Cannabis investors have done an about-face as marijuana became fully legal for adults in Canada on Oct. 17. In the two months leading up to legalization, the Horizons ETF had run up 47%.
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Among the more-active stocks, Aurora Cannabis Inc. ACB, -9.09% ACB, -12.96% made its debut on the New York Stock Exchange, moving over from the OTC Markets. The reception wasn’t too festive, however, as the stock plummeted 16%, to make it the Big Board’s second-biggest decliner. Trading volume was heavy at 15.2 million shares, enough to make it the seventh-most active stock on the NYSE.
Elsewhere, shares of Tilray Inc. TLRY, -3.95% slumped 11%, Canopy Growth Corp. CGC, -3.61% slid 7.9%, Cronos Group Inc. CRON, +1.64% shed 7.6%, Hexo Corp. HYYDF, -6.16% HEXO, -5.84% tumbled 15%, Aleafia Health Inc. ALEAF, -17.84% plunged 23% and Aphria Inc. APHQF, -4.39% APH, -4.19% plummeted 9.1%, GW Pharmaceuticals PLC GWPH, +0.53% gave up 2.4% and MedMen Enterprises Inc. MMNFF, -8.93% dropped 16%.
India Globalization Capital Inc.’s stock IGC, -3.75% took a 12% dive, and have lost 55% over the past six sessions. Read more about the red flags for IGC investors.
Green Organic Dutchman Holdings Ltd.’s stock TGODF, -7.30% declined 12% and New Age Beverages Corp. shares NBEV, -1.43% lost 13%. Net Element Inc.’s stock NETE, -14.67% fell 14%, after running up 53% on Monday as it launched a compliant payment-processing offering for the legal cannabis industry.
Despite the pot-stock sector selloff, a study on the American consumer conducted by GfK MRI, in collaboration with Miner & Company Studio, estimates that over 38 million U.S. adults, or 16% of the adult population, use marijuana, with 10% of the population consumer it at least once a month and 4% using on a daily basis.
The research also showed that 55% of users consume it for recreational purposes while 15% of users consume it for medical reasons. Of the total, 29% said they use it for both purposes.
Despite the long losing streak, the Horizons ETF was still up 9.7% over the past three months and the ETFMG ETF was up 13%, while the S&P 500 index SPX, -1.23% has lost 3.5%.