It's been a rough couple of weeks for CGC stock. After saying last week that it sold less cannabis in its March quarter than in December, Canadian company Canopy Growth (TSX:WEED) (NYSE:CGC) tumbled around 11%, and the bear run appears to be continuing this week.
Here's everything we know.
CGC Stock Goes Tumbling... Again
Based in Smith Falls, Ontario, Canopy Growth is one of Canada's biggest cannabis producers, holding the title of the leading cannabis company by market capitalization. And yet, the company reported disappointing quarterly results last week that saw CGC selling less cannabis in its March quarter than in the December quarter, and at narrow profit margins. After the report came out, CGC stock dropped significantly.
It is doing the same thing today, two days after CEO Bruce Linton said Canopy Growth doesn't plan on buying from small pot producers anymore. According to Yahoo Finance, at the time of writing, CGC stock is down 1.46% on the New York Stock Exchange.
On Monday, June 24, Linton provided comments about the future of the company in an interview with Barron's. According to the CEO, Canopy Growth is done with capital spending—he says once you use it, margins go up—and the company doesn't plan on purchasing cannabis from small producers anymore.
“We will not be buying anyone who currently produces cannabis in Canada for sure. We’re more interested in what exists in the pharmaceutical world than the cannabis world.”
Further, according to sources, Linton said that there are no growers outside of Canada that he would consider investing in.
It's hard to say if CGC stock is tumbling Wednesday because of last week's quarterly results, this week's comments about Canopy's future by Bruce Linton, or if, because the broader markets have been faltering this week, it's just one of those trading days for the cannabis stock.
Do you have any thoughts on the matter? Let us know in the comments below, and don't forget to see where CGC stock ends the week.
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