This Marijuana mainstay was the cannabis darling back in 2018. While cannabis stocks were doing well overall, shares of this company were the one all others were compared to. And it’s clear why…
even today. Canopy Growth (TSX:WEED)(NYSE:CGC) continues to be the largest producer and retailer in the world, vying for the top spot with just one other company. The future seemed green in more than one way when it came to Motley Fool investors. But then it all changed.
There were multiple reasons Canopy Growth stock went down, along with other companies. It quickly became clear that it would take some time for regulations and production to meet demand, especially in Canada. And even with Canopy Growth stock creating a footprint in the United States, a major future cannabis hub, it wouldn’t be until federal legalization that the company would see major cash.
So, that left the company far from profit. Really far. All the mergers, acquisitions, research, and development on top of peak production left Canopy Growth stock far in the red. And then, of course, COVID-19 hit. Production came to a halt, and all those acquisitions didn’t look so smart. The company made some cost-effective cuts, bringing debt down, and that leads us to today.
A lot has happened in the last six months. A new president in the United States had many Motley Fool investors believing Canopy Growth stock and others were on the way back up! Between October 2020 and February 2021, shares skyrocketed 213%! But since then, Canopy Growth stock has come back down to earth, losing 45% of its value.
Last month, Canopy Growth stock came out with its latest earnings report, and while the news wasn’t great, it wasn’t terrible either. The company saw revenue climb 23% year over year and continued to be the top Canadian recreational cannabis producer. And it’s back on acquisitions, recently buying up both Ace Valley and Supreme Cannabis. In return, it’s shelving over 100 innovation projects to safe cash.
Here’s what it comes down to: is it worth it? That’s what analysts want to know. As of writing…
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