Can Aurora Cannabis Recover in 2020?
So you think the cannabis sector has seen its worst? That there's no coming back? Well, here's a twist: The COVID-19 pandemic might have dragged down most sectors, but it is lifting up marijuana stocks for sure. Cannabis sales skyrocketed in April amid the pandemic, pushing companies' revenues higher. In fact, most marijuana businesses reported good revenue numbers this quarter. But one, in particular, seems to have risen from the dead.
Edmonton, Alberta-based Aurora Cannabis (NYSE: ACB) saw strong demand after Canada legalized recreational marijuana in 2018. The company ramped up its production facilities, paying little attention to its rising debt. External factors including black-market sales and a slow rollout of stores post-legalization made it harder for the company to make a profit; ultimately, investors lost trust, and the stock kept sinking below $1 -- to the point that it was at risk of being delisted from the New York Stock Exchange.
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Source Fool.com
