Important events
Feb 102022
Earnings toke investors’ breath away
Canadian marijuana giant Canopy Growth gets investors giggling with glee with its Q3 earnings.Key points:
- The stock steamed ahead 15% to put itself in the green for 2022 after it reported a narrower than expected LPS of C$0.26 ($0.22) on revenues that beat estimates at C$141m ($178m).
- Overall revenue was down 8% y-o-y thanks to a decline in Canadian marijuana sales, which were down 21% to C$60.7m ($77m). If/when the U.S. legalizes cannabis at a federal level, that market will be worth more than all their others combined – though the timing is uncertain.
- Growth in its drinks and vapes categories saved the day. The marijuana sales decline prompted a “renewed sense of urgency” to find profitability in Canada, which it did, through record sales in its consumer products business, buoyed by a bunch of new releases.
Illustration by TradingView
Nov 082021
Harshing the vibe as cannabis stocks collapse
Canopy Growth has investors on a comedown after a weak Q1 report and a blunt FY forecast sent prices down 11% on Friday.💔 Canopy Growth managed a narrower than expected loss but a decline in sales still has investors down in the dumps.
🇨🇦 The Canadian market’s heating up. There’s a long list of hot new entries that are taking sales away from Canopy.
🌿 People want the strong stuff (meaning higher THC) and Canopy didn’t adjust quickly enough to the demand, so other companies raked in the business.
🍬 New product releases like soda and gummy bears should help take back some market share.
🚬 Pot stocks have been down recently – since February Tilray (TLRY) has fallen nearly 95%, Canopy lost 80% in the same time, and Aurora Cannabis (ACB) is down 65%.
