Is Aurora Cannabis Stock a Buy Now?
If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. The Canadian marijuana company is mapping out a path to ultimately overcome the intense turbulence it encountered over the last couple of years, and if management's guidance proves correct, it may even see its shares begin to appreciate in value.
But at the end of the day, it's still a risky pot stock in the midst of finding its footing, and there are a few potential stumbling blocks ahead. Here's what you need to know about whether to buy the stock or not.
Aurora shareholders have had a (very) rough few years. The company's shares are down 96% compared to three years ago, and its quarterly revenue is down by 9% in the same period, leaving it with around 63 million Canadian dollars in sales. Multiple factors are to blame, starting with its now-abandoned leave-no-customer-behind strategy, wherein it seriously overbuilt its cannabis production capacity as well as its retail footprint in an attempt to seize as much of the Canadian marijuana market as possible.
Source Fool.com
