Indoor Farming Stocks have been severely affected by the current market trend with certain companies flirting with the USD 1.00 per share zone which could lead to them becoming de-listed.
The macroeconomic events, and the speculation money fading away added to the fact that most Indoor Ag companies are yet to beat Earnings per Share estimates or, Revenue estimates constitute a perfect cocktail for their shares to plunge.
This led certain companies to plunge by over 80% in the past 3 months reaching all-time lows despite encouraging announcements with the opening of new facilities, new partnerships furthering their retail presence, and better performances compared to previous quarters.
As the earning season edges closer, we decided to give you a good overview of the current market trend as well as the recent announcements made by these companies.
The Performance Of Publicly-traded Indoor Farming Stocks
Since the AeroFarms SPAC failure, a number of indoor ag companies have started floating on the public market on NASDAQ, NYSE, and other public markets around the world.
The recent months have been rather complicated on the markets, prone to a lot of volatility and fear drove by a wealth of dramatic events: The Ukrainian War, Tensions in Taiwan, the UK’s economy tumbling, inflation rates, interest rate hikes, large financial institutions reaching critical levels, The US dollar appreciation, and the energy crisis.
Indeed, as we can see in the graph below, the NASDAQ composite Index, FTSE 100, NYSE, S&P 500, and DOW Jones have tumbled since the start of the year. The NASDAQ composite lost 33.36% since January 2022, The S&P 500 lost 24.69%, the NYSE composite lost 20.51%, the Dow Jones Industrial lost 20.18%, and the Financial Times Stock Exchange 100 lost 9.57% during the same period as a result of the events enumerated above.
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Photo by Maxim Hopman on Unsplash
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