How Risky Is Aurora Cannabis Stock?

Aurora Cannabis (NYSE: ACB) is easy to see as a particularly risky cannabis company, especially since its stock price effectively collapsed this year, dropping nearly 80% since Jan. 1. Between the pandemic's effect on retail revenue and an uncertain future for the legalization of cannabis in North America and elsewhere, Aurora Cannabis is not the lone pot stock experiencing immense disruption. If investors want to protect their marijuana stock portfolios, they'll need to understand the plethora of risks facing companies like Aurora.

In short, Aurora's stock could easily see a burst of growth if cannabis is federally legalized in the U.S. or the E.U., but that won't solve the company's larger issues with profitability. Nor will it guarantee that the company captures a significant share of the newly created markets. In fact, new developments in both of these areas have recently changed the riskiness of the stock.

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Source Fool.com