- NASDAQ:SNDL fell by 2.23% during Wednesday’s trading session.
- The MORE Act has a challenging path through the Senate.
- A looming threat of a reverse split could dampen Sundial’s outlook.
NASDAQ:SNDL seems like it has a one-way ticket back down to its 50-day moving average price of $0.55, as the popular cannabis stock has now had eight straight winless days. On Wednesday, shares of SNDL fell a further 2.23% and closed the trading session at $0.63. It was a second straight day of red for the broader market as all three major indices closed the session lower. The Federal Reserve released its latest FOMC minutes which pointed towards further tightening of its policies. The Dow Jones fell by 144 basis points, the S&P 500 dipped by 0.97%, and the NASDAQ tumbled by 2.22% as rising yields once again hit growth stocks the hardest.
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Now that the MORE Act has passed the vote in the House of Representatives, the next step towards federal legalization lies in the Senate. President Biden has openly stated that he is in favor of the criminalization of cannabis laws being updated, but has yet to publicly throw his support behind the MORE Act. The vote will require 60 of a possible 100 votes to pass through the Senate and avoid a filibuster, something many experts believe will be difficult to accomplish.
SNDL stock forecast
Something that has been lost in all of this is Sundial’s ever shrinking stock price. Shares will need to trade for more than $1.00 for ten trading sessions before August 8th, or the stock will be delisted as per official NASDAQ regulations. If the stock cannot climb back over $1.00, especially if the MORE Act does not pass through the Senate, then the company may have no other choice than to reverse split its shares.
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