Pot stocks have had a rocky fourth quarter, with the ETFMG Alternative Harvest ETF (MJ) - Get Report falling 25% over the past three months.

That trend continued Thursday with the largest pot ETF by net asset value falling 1.6%. Alternative Harvest has had a rough fourth quarter since reaching a year-to-date high of up 32% in September. 

The industry may be suffering from the bubble that inflated earlier this year as investors overvalued many of the stocks in the sector. 

The pot industry, however, got some good news after Congress passed the 2018 Farm Bill, which legalizes the cultivation and farming of hemp, which contains cannabidiol (CBD), the non-psychoactive chemical compound found in cannabis. 

Shares of New Age Beverages Corp. (NBEV) - Get Report , which manufactures CBD-infused drinks, jumped more than 11% on the news before pairing all of its gains amid a market selloff. 

DAVIDsTEA Inc. (DTEA) - Get Report shares closed up 6% ahead of the company's earnings release after Thursday's closing bell. The company reported an adjusted net loss of 28 cents per share after reporting a net loss of 17 cents per share a year ago. The company also reported a decline in same store sales in the third quarter. 

"Despite a decline in same store sales, we are seeing favourable trends in several areas of the business," stated Herschel Segal, Executive Chairman and Interim Chief Executive Officer. "We continue to have great confidence in our team, in our brand, our growth opportunities and our capacity to improve our financial results."

The company's shares tanked 20% after-hours following the results. 

India Globalization Capital Inc. (IGCC) jumped 4% on the CBD news. 

Other stocks in the sector traded lower Thursday. 

Aurora Cannabis Inc. (ACB) - Get Report shares fell more than than 6% after the company invested $10 million in High Tide, a Canadian cannabis retailer that Aurora says is "developing an expanding network across Canada of cannabis and cannabis accessory retail stores."

Shares of Tilray Inc. (TLRY) - Get Report were down 10% despite the news that the California Public Employees' Retirement System, the biggest pension fund in the country, owned 1,617 shares of the Canadian cannabis company. 

Canopy Growth Corp. (CGC) - Get Report declined 3.4%, while Cronos Group Inc. (CRON) - Get Report  and Aphria Inc. (APHA) - Get Report  dropped 5.5% and 8%, respectively.