SNDL Stock Forecast: Sundial Growers drops further as growth sectors continue to tank

NASDAQ: SNDL is close to hitting free fall as the Canadian cannabis company’s stock declined for the fifth straight session. Shares of SNDL fell by a further 2.55% on Tuesday and closed the trading day at $0.67. With the extended drop, Sundial Growers has now lost both its key 50-day and 200-day moving averages and is sliding into a bearish downtrend. It was another difficult day for growth sectors as ten-year treasury bond yield rates continued to rise, sending the NASDAQ into the red for the second straight session. Meanwhile, cyclical stocks performed better, with the Dow Jones climbing by 195 basis points,  and the S&P 500 finishing moderately higher. 

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If Sundial investors want something to be positive about, Canadian investment firm Canaccord reiterated its hold rating for the stock recently. The company also kept steady with an $0.80 twelve-month price target, which does show some upside from Tuesday’s closing price. The stock is still mired in its current downtrend, although a positive earnings report and a newly announced stock repurchasing plan from the company does provide a brighter outlook for the rest of the year. 

SNDL stock news

Tuesday was not only a rough day for growth sectors, but it was an awful day for the meme stock sector. While Reddit investors haven’t been that interested in Sundial for a while now, it still remains one of the original meme stocks. On Tuesday, AMC (NYSE:AMC) and GameStop (NYSE:GME) plunged by 5.04% and 13.59% respectively, while ContextLogic (NASDAQ: WISH), Vinco Ventures (NASDAQ: BBIG), and Camber Energy (NYSEAMERICAN: CEI) all tumbled as well.