Is Sundial Growers (NASDAQ:SNDL) Stock Worth a Buy After The Sharp Correction?

Sundial Growers (NASDAQ:SNDL) could benefit from cannabis legalization in the USdespite the federal government being adamant o legalization. Currently, sundial Growers is exclusively tied to the Canadian market, but that could change once the US reschedules cannabis.

Besides the stock attracting investors in social media platforms for a possible short squeeze spark, the company focuses on the production of premium cannabis products catering to hardened connoisseurs and canna-curious consumers. For some, Sundial is an attractive brand that will break into the US market once cannabis is legalized at the federal level.

The company had a net loss of $134.4 million attributed to $130 million in non-cash amounts that reflected the share price volatility’s impact on the accounting valuation of derivative warrants.However, the company cut down on net losses in Q2 2021, but the company is still losing cash. Although there is speculation that the legalization of cannabis in the UScould make the stock to fly, that is a long shot considering attention now is on the Afghanistan fallout. So in the coming months, SNDL is worth watching.

Market Reaction:

On Friday, SNDL stock decreased 2.97% at $0.7754 with more than 43.67 million shares, compared to its average volume of 103.99 million shares. The stock has moved within a range of $0.7710 – 0.8000 after opening the trade at $0.7981.