1 Red Flag for Canopy Growth in 2022, and 1 Green Flag
Mergers and acquisitions (M&A) have been extremely popular among cannabis companies in the past year. According to Viridian Capital Advisors, 306 M&A deals took place during 2021, compared to only 86 in 2020, for a 286% jump year over year.
That trend is expected to continue in 2022 as larger multi-state operators scoop up smaller companies in an attempt to expand in growing markets, and to enter markets on the verge of opening.
Canopy Growth (NASDAQ: CGC), which is headquartered in Canada and has inroads in the U.S., has made its presence known in a big way. But until federal legalization in the U.S., investors may need to tolerate volatility in the stock. Can the company's investments outshine its obstacles in order to achieve a brighter future?
Source Fool.com
