Buy Canopy Growth Corp Stock
And progress toward decriminalization or legalization is exactly where a heavily bruised cannabis stock like Canopy Growth (CGC) just might have an opportunity to make a sharp turnaround. But will Canopy be able to recover from its recent collapse, or is it too late for investors to make a profit given its issues with maintaining revenue growth over time?
buy canopy growth corp stock
So there's a chance that rising beverage sales and divesting its Canadian retail business could help to stabilize the decay of the top and bottom lines over the next year. Eventually, that could in turn lead to the stock rising again, though cannabis revenue would probably need to return to growth before that could happen.
In short, there's a chance for Canopy's stock to shoot higher in the near term if legalization advances, and a separate chance that it'll slowly recover even without legalization if its margin and top-line issues abate over time. It isn't too late to invest with the hope of those outcomes catalyzing growth. In the long term, it could become a must-buy cannabis stock if its high-margin products end up gaining traction.
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Canopy Growth (TSX:WEED, NASDAQ:CGC) is a world-leading diversified cannabis and cannabinoid-based consumer product company, driven by a passion to improve lives, end prohibition, and strengthen communities by unleashing the full potential of cannabis. Leveraging consumer insights and innovation, we offer product varieties in high-quality dried flower, oil, softgel capsule, infused beverage, edible, and topical formats, as well as vaporizer devices by Canopy Growth and industry-leader Storz & Bickel. Our global medical brand, Spectrum Therapeutics, sells a range of full-spectrum products using its colour-coded classification system and is a market leader in both Canada and Germany. Through our award-winning Tweed and Tokyo Smoke banners, we reach our adult-use consumers and have built a loyal following by focusing on top quality products and meaningful customer relationships. Canopy Growth has entered into the health and wellness consumer space in key markets including Canada, the United States, and Europe through BioSteel sports nutrition, and This Works skin and sleep solutions; and has introduced additional hemp derived CBD products to the United States through our First & Free and Martha Stewart CBD brands. Canopy Growth has an established partnership with Fortune 500 alcohol leader Constellation Brands. For more information visit www.canopygrowth.com.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the timeline for federal permissibility in the United States, the integration of the businesses and the ability to achieve the anticipated synergies contemplated by the transaction; inherent uncertainty associated with projections; the diversion of management time on transaction-related issues; expectations regarding future investment, growth and expansion of operations; regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial and stock markets; risks related to infectious diseases, including the impacts of the Covid-19 pandemic; legal and regulatory risks inherent in the cannabis industry, including the global regulatory landscape and enforcement related to cannabis, political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the cannabis industry; and such other risks contained in the public filings of the Company filed with Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com and with the United States Securities and Exchange Commission through EDGAR at www.sec.gov/edgar, including the Company's annual report on Form 10-K for the year ended March 31, 2021.
Canadian cannabis companies with high growth potential are down to two following huge financial losses of major players in recent years. If you plan to invest in cheap weed stocks right now, the choice is between Tilray Brands (TSX:TLRY) and Canopy Growth (TSX:WEED) only.
The U.S. cannabis industry is estimated to have a TAM (total addressable market) of more than $50 billion. This presents a huge opportunity for the cannabis stock. Canopy growth will potentially hold the leading market share in the U.S. upon federal approval and unlock significant value for its shareholders.
Could Canopy's growth prospects justify its valuation? Maybe so. The company's market cap is a little over $6 billion. Aurora Cannabis Chief Corporate Officer Cam Battley recently stated that the global marijuana market could be as big as $180 billion in the future. Even if that estimate is overly optimistic by a lot, Canopy Growth could have enough opportunities to make the current stock price much less scary than it seems at first glance -- although not likely enough to entice Buffett.