What happened
Numerous marijuana stocks beat the market and rose in price on Thursday. This seems to have sprouted from the latest results published by Green Thumb Industries (GTBIF -5.60%) and GrowGeneration (GRWG -6.38%).
GrowGeneration's stock shot nearly 43% higher on the day. HEXO (HEXO), Green Thumb, and Charlotte's Web Holdings (CWBHF -3.23%) notched more modest, but still encouraging, rises.
Image source: Getty Images.
So what
GrowGeneration's second quarter represented its 10th consecutive quarter of record revenue. Meanwhile, the $43.5 million it reaped was more than double the Q2 2019 tally. Generally accepted accounting principles (GAAP) net income also recorded an all-time high at $2.6 million, again over twice the year-ago result.
Green Thumb's record was in July sales, which bounced 22% higher month over month. The company's overall Q2 top line rose almost 17% quarter over quarter and nearly 168% year over year to almost $120 million. Net loss narrowed to $12.9 million from Q2's $20.9 million.
As for HEXO, it floated a new at-the-market stock issue of over 33.9 million new shares. This brought in gross proceeds of nearly 34.5 million Canadian dollars ($26 million). Although equity issues are dilutive, they are considered by many marijuana stock investors to be preferable to debt in this ever cash-strapped industry.
Now what
It's unusual enough when there is one item of good news in the marijuana sector; Thursday brought several. But this industry still has many challenges in front of it, so any optimism should be tempered by the gritty reality of the current situation.
