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ACB’s share price has slumped 15.5% so far this year and 22.4% over the past month. Closing yesterday’s trading session at $7.02, ACB’s stock is trading 63% below its 52-week high of $18.98, which it hit on February 10. Although the cannabis operator has been making substantial progress in diversifying its portfolio by launching new proprietary cultivars and expanding its footprint in the rapidly growing medical cannabis market in the U.K., it has been struggling to generate consistent revenue growth.
While investors remain optimistic about the positive momentum in legalizing cannabis at a federal level, uncertainty surrounding the Senate’s stance on the Cannabis Administration and Opportunity Act, which was introduced earlier last month, could lead to volatility in cannabis stocks in the coming months. So, ACB’s shares could retreat further in the near term.
