SNDL Stock Forecast: Sundial Growers dips as meme sector continues to struggle

NASDAQ: SNDL fell by 3.18% during Friday’s trading session.
The cannabis industry has potential, but legalization hasn’t been easy.
Meme stocks have a tough week as market volatility continues.

Stocks Reporter FXStreet

NASDAQ: SNDL could not hold its recent support level as it gave into the broader market sell off that hit in the abbreviated session after the Thanksgiving holiday. Shares of SNDL fell by 3.18% and closed the trading week at $0.65. Despite some indications of growth following a stronger than expected quarter, Sundial still fell by nearly 14% this week, and is now flat for the month. Sundial’s dip on Friday came as no surprise as the sudden breakout of the Omicron Variant of the coronavirus sent the markets reeling. The Dow Jones tumbled by over 900 basis points, while the NASDAQ and the S&P 500 fell by 2.23% and 2.27% respectively. At the session lows the Dow was down over 1,000 basis points, making it the single largest drop by the blue-chip index in 2021.

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Cannabis legalization in the United States hasn’t been an easy hill to climb, even after the Biden administration entered the Oval Office. South Dakota’s Supreme Court recently overturned a legalization ballot for cannabis, and other states are not gaining much traction either. For the states that have legalized cannabis, pandemic revenues soared as many people had the ability to safely use cannabis products in their homes. Cannabis remains a volatile industry, although given that cannabis stocks are currently beaten down, it may offer a nice buying opportunity moving forward.

SNDL stock news

A highly volatile week on the markets led to some more pain for meme stock investors. After a recent surge, GameStop (NYSE:GME) and AMC (NYSE:AMC) both closed in the red, losing 4.50% and 6.58% respectively over the past week. Other meme stocks falling on Friday included Sundial Growers, ContextLogic (NASDAQ:WISH), and Vinco Ventures (NASDAQ:BBIG).

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Stocks Reporter

FXStreet

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