Don’t Buy Aurora Cannabis Stock Until These 2 Things Happen

If popularity translated to solid performance in the stock market, Aurora Cannabis (NYSE: ACB) would be one of the best marijuana-related investments around. The pot grower has been a regular on the list of the 100 most popular stocks on the trading app Robinhood, but the notoriety hasn't helped its business. Over the past year, the company's market cap and stock price have both declined by more than 75%. In all fairness, the entire marijuana industry has struggled and even the top dogs are anxiously awaiting better days.

The market for cannabis will expand significantly if more countries opt to legalize recreational use of marijuana for adults. Aurora Cannabis stands firmly in a position to benefit from such a situation. Of course, a legalization scenario in the United States is far from guaranteed. Still, the sector has made significant progress over the past three years. Canada has legalized recreational marijuana and edibles, and the U.S. has legalized hemp and hemp-derived products. It is safe to say that general public perception, normal medical recommendations, and government attitudes are all trending toward legalization.

But even if favorable laws sweep the globe, Aurora Cannabis isn't the company investors should pick to get their feet wet in cannabis -- at least not until it treats the following two issues.

Source Fool.com