Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Vaping scare burns shares of cannabis-related stocks

Vaping scare burns shares of cannabis-related stocks

Cannabis stocks are taking a hit from the vaping scare, and short-sellers are riding high.

Through Oct 1, the US Centers for Disease Control and Prevention (CDC) has linked vaping to 18 deaths in 15 states and 1,080 lung-injury cases nationwide.

While the cause of the health problems is unknown, proposed crackdowns are taking a toll on vaping, one of the fastest-growing sectors of the legal marijuana market.

The legal cannabis sector has attracted investments from major companies such as Constellation Brands, a Fortune 500 company that produces and markets beer, wine and spirits.

But the long-term outlook now appears uncertain. Investment firm Stifel Nicolaus cut its rating of Aurora Cannabis stock to sell from hold and slashed the price target, an estimate of a stock's fair value, by 30 percent.

Shares of Canada-based Canopy Growth, Aurora and Cronos Group are down about 29 percent each since Aug 1, and Tilray is down about 40 percent.

Short-sellers investors who bet that a stock's price will fall have benefited from the vaping controversy. S3 Analytics said short-sellers lost $1.78 billion when cannabis stocks jumped in the first quarter of 2019, but made $336 million in the second quarter and about $1.76 billion in the third quarter as shares fell amid concern about vaping.

US President Donald Trump has proposed a national ban on flavored vaping products, and the governors of major states, including New York and Massachusetts, have suggested similar bans. San Francisco has proposed a ban on all vaping products.

Vaping, the inhalation of vapor through the mouth from a battery-operated electronic device that heats and vaporizes a solid or liquid, initially was believed to be less harmful than smoking cigarettes, because there is no combustion of tobacco or the paper used to wrap it. While the cause of the health problems is unknown, the proposed crackdowns are taking a toll on vaping, one of the fastest-growing sectors of the legal marijuana market.

The CDC said 70 percent of those reporting health problems related to vaping are men under age 35 with a history of using tetrahydrocannabinol, or THC, the psychoactive element in marijuana that gives users a "high". However, US government investigators have not conclusively linked the vaping illnesses and deaths to THC.

"No single product or substance has been linked to all lung injury cases," the CDC said in a report. "The outbreak is occurring in the context of a dynamic marketplace for e-cigarettes, or vaping, products, which may have a mix of ingredients, complex packaging and supply chains, and include potentially illicit substances."

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×