Cannabis stocks slammed as Canopy earnings disappoint

Cannabis stocks fell on Friday, led by Canopy Growth Corp., after the biggest company in the sector measured by market cap reported an unexpected decline in recreational pot sales in Canada in the fourth quarter from the previous one.

Jefferies analyst Ryan Tomkins said the losses should be no surprise given the sums the company has been investing, “but given the degree of the losses and the fact that profitability is becoming more of an investor focus, it is likely to cause concern,” he wrote in a note to clients. See: Corona-parent Constellation Brands to record $106 million loss as its share of Canopy Growth’s losses

Stifel analysts said the near-term execution issues were disappointing, if not surprising. Stifel is also a believer in the sector’s long-term potential and Canopy’s competitive edge, given its strong balance sheet, courtesy of a $4 billion investment from Corona beer distributor Constellation Brands Inc. STZ, -1.08% and the fact that it has just sealed a deal that will give it a foothold in the U.S.

In Oregon, Gov. Kay Brown has signed a bill that will address the oversupply in that market caused by an overly liberal licensing approval process, as Marijuana Business Daily reported. A cannabis glut has depressed prices in the state. Senate Bill 218 will allow the Oregon Liquor Control Commission to refuse to issue grower licenses until such time as supply and demand fundamentals improve.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canopy co-CEO defends large losses as a deserved reward for pot company’s employeesCanopy Growth Corp. co-Chief Executive Bruce Linton defended the company’s widening paper losses Friday by contending that paying employees with stock is... Clearly high... That's based on the company. Obviously they are smoking their own product.
Source: MarketWatch - 🏆 3. / 97 Read more »

Canopy co-CEO defends large losses as a deserved reward for pot company’s employeesCanopy Growth Corp. co-Chief Executive Bruce Linton defended the company’s widening paper losses Friday by contending that paying employees with stock is... Clearly high... That's based on the company. Obviously they are smoking their own product.
Source: MarketWatch - 🏆 3. / 97 Read more »

Oracle closes at record high after earnings beatAnalysts raised their price targets on Oracle and were bullish on revenue growth even as other infrastructure companies face challenges. larry got a few more java licenses than expected
Source: CNBC - 🏆 12. / 72 Read more »

Nike earnings: Tariffs aren’t a threat to the athletic giantNike Inc. is scheduled to report fourth-quarter earnings on Thursday after the bell and analysts say business is running so smoothly even tariffs can’t knock... That child labor comes in handy in times like this huh
Source: MarketWatch - 🏆 3. / 97 Read more »