Canopy Growth earnings report: Canopy Growth (TSX:WEED) is a household name in the cannabis market. Everyone knows it, and everyone - for the most part - loves it. So why is it that, a week after Canada passed Bill C-45, Canopy Growth took a massive hit on the market?
The answer is simple. On Thursday, Canopy Growth posted its earnings report, the very first one as a public US company - and, well, let's just say it wasn't good.
Is Canopy Growth worried, though? Not really. If anything, Bruce Linton, CEO of the company, shrugged off the concerns.
Canopy Growth Earnings Report: What We Know
In the Canopy Growth earnings report, there were two main takeaways. First, Canopy Growth registered a net loss of $61.5M in the quarter. For perspective, during the same quarter in 2017, the Canopy Growth earnings report noted a $12.0M net loss.
It's pretty easy to do the math and see why this past quarter was so disappointing.
With that being said, there was another take away in the Canopy Growth earnings report. According to Linton, Canopy Growth looked at cannabis as a product in the quarter, rather than a commodity. With this mentality, some of the figures noted in the report seem a bit more justifiable.
Canopy Growth Talks Current Cannabis Market
As one of the main producers in the industry, Canopy Growth sure has a lot to say about the cannabis market.
For starters, on Thursday, Canopy Growth said that it has no plans to be selling cannabis as an ingredient by 2020 or 2021.
Specifically, CEO Linton said that by then, "there will be too much cannabis produced," and he thinks the drug should be transformed. For instance, Canopy Growth is going to start focusing more on sleep aids and beverages.
Canopy Growth: Moving onto Bigger Things
So, it has been made evident this week that Canopy Growth is not worried about the net loss that it reported in its earnings report. In fact, it was the farthest thing from Linton's mind. Moving forward, Canopy Growth is all about transformation and innovation.
But is that a wise route to go down? I mean, nothing is worth anything if the market disagrees with corporate plans. And right now, it doesn't look like the market is reacting in a positive manner.
The Canopy Growth Stock: June 29th, 2018
Yesterday, after the mixed Q4 results, Canopy's share price dropped 10%, and today, Canopy Growth is down on both the TSX and NYSE.
According to Google Finance, at 4:00 p.m. EDT, the WEED stock was trading at $38.42 on the TSX. This means the stock was down 5.16% at the time.
On the NYSE, the CGC stock was trading down 4.09% at the same time.
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