CGC stock is rebounding today after Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) announced its Q3 fiscal 2019 results yesterday after the bell. Cannabis stocks have been trading mostly red this week on US and Canadian markets, but this latest earnings report seems to have lifted the entire industry today!
CGC Stock on the Rise
The Canopy Growth Q3 results stated that the company's third-quarter revenue rose 282% over the last year. Investors seem relieved by the company's sales numbers, despite missing profit expectations. The company brought in new revenue of $83 million in Q3 fiscal 2019 and sold 10,102 kilograms of marijuana.
After cannabis was legalized recreationally across Canada in mid-October 2018, the North American cannabis supply shortage was brought to light. Now, Canopy is focusing specifically on this issue. If Canopy Growth can continue to expand like it did this past year, CGC stock should continue to rise in 2019.
"The Canadian recreational cannabis market will be dominated in the long term by businesses delivering excellent products and consumer experiences," Canopy Growth CEO Bruce Linton said in a press release Thursday. "Sales from the first wave of products and retail environments launched in the third quarter demonstrate that we are capturing consumers' attention."
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Canopy Growth's Q3 results showed oils and soft gel capsules accounted for 33% of its product revenue. The company will continue to push out these products to market. Also, Canopy introduced new products this past quarter, such as pre-rolled joints and cannabis sprays. Canopy Growth will continue to invest around $150 million into its US hemp operations, which could add significant profit to the company.
CGC Stock Movement
According to Yahoo Finance, CGC stock is currently trading at $47.36 a share, up +$1.24 (+2.70%). The stock is up 75% already on the NYSE this year. WEED is currently trading at $63.33 a share, up +$2.05 (+3.35%) on the TSX. Year-to-date, the Canadian stock is up 72%.
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