What Investors Can Learn from Canopy Growth’s Downfall

In our latest TDR Cannabis Exclusive, Canopy Growth’s former CEO and Co-founder Bruce Linton joins Shadd Dales once again with lead financial writer Benjamin A. Smith. On the agenda for discussion: the stock price, challenges, and what might be in the company’s future.

The Smith-Falls based company, Canopy Growth Corporation (TSE: WEED), was the largest cannabis company in the world in 2019 based on the value of all shares. It had been a hot investment, and there had been a great deal of expectation that they would dominate Canada’s market and move south. But things didn’t turn out that way, and stocks began to fall repeatedly from highs of over $60 a share to today’s prices.

What caused their downfall and what can investors learn from it?

There are reasons Canopy is sinking. Bruce Linton shares his thoughts on the declining revenue and stock price of the company and gives insight on some of the challenges they experienced. Regulatory hurdles, market saturation, and stiff competition have all played a part in impacting Canopy Growth’s revenue and overall performance.

We also discuss how Canopy shifted its focus on retail markets, and explore their approach in adapting to consumer preferences, improving distribution channels, and establishing a strong presence to survive in this uncertain market.

Can the company still recover? Or will they spin out their U.S. assets down the line? Linton’s asked for his financial predictions for Canopy, and you’ll have to tune in to find out what they are.

We delve on different business models that many cannabis companies are doing to help them regain bare revenues, and if these approaches positively impact the market condition—or whether they’re a detriment. We also debate the question: Can the industry, as a whole, still rise? With that question, we explore some of what companies and investors might anticipate in the space.

Here’s the latest.