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Why Pot Stock Giant Canopy Growth Will Continue to Struggle

“Until more retail outlets are operational and the black market influence is reduced, Canopy Growth will continue to struggle in regard to recreational pot” writes Gary Bourgeault for nasdaq.com. The growth prospects for Canopy Growth look anemic in the short term, and even further out it has significant headwinds it must overcome in order to return to sustainable growth.For now, the risk connected to Canopy Growth doesn’t offer enough reward to justify taking a position in the company.As for the weakness related directly to the Canadian recreational market, the low number of retail outlets to sell through has hindered Canopy Growth and others based in Canada.The primary strength is the potential for rapid revenue growth, and the major weakness is recreational pot generates lower margins, which requires more sales to boost earnings.
 
Source: nasdaq.com



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