Cannabis stocks fell across the board Tuesday after PepsiCo told investors that the food and beverage giant said it has no plans to invest in marijuana.
Though most of the marijuana stocks opened Tuesday without much fanfare, they took a leg lower after PepsiCo Chief Financial Officer Hugh Johnston told Cowen analyst Vivien Azer on the company’s earnings conference call that the company is steering clear of pot for now.
“I think the difficulties in investing in that category, particularly in the U.S., where federally these things are still not legal, are quite a considerable challenge,” he said on the call. “So we look at everything, but certainly no plans at this point to do anything.”
Tilray, one of the most volatile of the weed equities, lost about one-fifth of its value at one point.
The shares closed lower by 16 percent. Peers Canopy Growth dropped 7.4 percent while HEXO shed 9.4 percent in Toronto. Tilray is a medical cannabis producer.
Shares of Aurora Cannabis, which had reportedly at one time been in talks with Coca-Cola for weed-infused beverages, fell 5 percent on the Toronto stock exchange. [Read more at CNBC]