Can These Beaten-Down Growth Stocks Recover in 2023?
The stocks of Canadian cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) skyrocketed after the legalization of recreational marijuana in Canada in 2019. Investors poured money into the shares based on the potential of the cannabis industry. However, during the past two years these once-popular hot stocks have been on a downward spiral as they've struggled to achieve profitability.
Though the drug is legal in Canada, slow-to-change regulations and a smaller market with increasing competition have hampered the growth of the Canadian cannabis companies. However, both companies are making every effort to recover, from cost-cutting to smart acquisitions. They have left no stone unturned to achieve positive earnings before interest, taxes, depreciation and amortization (EBITDA) as soon as possible. Let's see if the efforts will help both Aurora and Canopy to recover in 2023.
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Source Fool.com
