Canopy’s Stock Rally Gives Cannabis Industry a Boost
In case you missed it, the markets went gaga for Ontario-based cannabis company Canopy Growth Friday, igniting an industry-wide rally that left investors with a contact high.
Here’s what started it all, per Market Watch:
The company reported a net loss of C$124.2 million ($93.8 million), or 35 cents a share, after net income of C$74.9 million, or a loss of 38 cents on a per-share basis. That beat the FactSet consensus for a loss of 52 cents a share.
Net revenue rose 49% to C$123.76 million ($93.46 million), above the FactSet consensus of C$105.0 million. Recreational business-to-business cannabis sales fell 11% to C$53.5 million, as a 42% increase in dry cannabis sales was offset by an 86% drop in oil and softgels.
Recreational business-to-consumer cannabis sales increased 32% to C$15.2 million, as dry cannabis sales grew 24% and oil and softgels jumped 183%. Canadian medical cannabis sales fell 7% to C$14.8 million and international medical sales rose nearly sevenfold (up 593%) to C$18.7 million.
MKM analyst Bill Kirk told Market Watch that the report represents a “beacon of hope” for the cannabis sector. Benefitting in the aftermath were stocks in Aurora, Tillray, CannTrust Holdings Inc. and others.
As CalMarijuanaPolicy has reported, the cannabis industry has been in a slump. Friday’s rally was welcome news.