SNDL Stock News: Sundial Growers tumbles and posts a 14% loss for the week

NASDAQ: SNDL dipped lower again on Friday and closed the trading week down 14% to hit a new 52-week low price. Shares of SNDL dropped a further 5.24% and closed the trading session at $0.33. Sentiment is extremely risk-off right now and the cannabis industry seems like one of the last ones that investors want to get involved in. 

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The May CPI report was released Friday morning and inflation hit its hottest rate in 40 years. This sent the ten-year treasury bond yield soaring and stocks plummeted for the second straight day. The Dow Jones sank by 880 basis points, while the S&P 500 and the NASDAQ posted 2.91% and 3.52% losses respectively during the session. 

At the current rate of Sundial’s decline, the stock might need to see another short squeeze to remain listed on the NASDAQ exchange. The alternative would be a reverse stock split or being delisted to a smaller exchange or even the OTC markets. Sundial does have some bullish catalysts including the potential for its best quarter yet after its acquisition of Alcanna, as well as the outside chance of federal legalization in the US. Still, short squeezes have been few and far between since 2021, so Sundial might need to look to other ways to remain listed. 

Sundial stock forecast

Two interesting decisions came down from Asian governments that have been traditionally very strict about drugs like cannabis. First, Thailand became the first Asian country to legalize cannabis for medicinal use although it remains banned for recreational use. Meanwhile in Hong Kong, the government has announced plans to ban CBD products because a study found that a large number of products had traces of THC which is illegal in Hong Kong. It is inconsistency like this that has made it difficult for the cannabis industry to expand to a global scale.

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