Is Canopy Growth Stock a Buy?
Canadian marijuana company Canopy Growth (NYSE: CGC) sells everything from raw cannabis flowers to THC-infused beverages and cannabidiol hand creams. With its diverse collection of brands, it's among the industry's stronger competitors, and its stock is popular among some groups of investors. But like many cannabis companies, it isn't profitable, and its shares are down by more than 12% year to date, far underperforming the broader market.
Does this cannabis company have what it takes to become profitable and deliver the growth that its investors are seeking? Or are its problems the result of intractable internal issues and a business plan built around an expectation of low production costs that it can't deliver in reality?
In my view, Canopy Growth has promise as a result of its demonstrated capability to expand into new markets, but its penchant for overspending on building additional manufacturing capacity makes it a risky investment.
Source Fool.com
