The 5 Scariest Numbers in Canopy Growth's Q1 Report
For years, cannabis stocks have been practically unstoppable, and their robust long-term growth prospects were to thank for their outperformance. Depending on your preferred source, the global pot industry could see sales soar from $3.4 billion in 2014, to anywhere from $50 billion to $200 billion by the end of the next decade. That's more than enough growth to get the attention of Wall Street and investors.
Unfortunately, next-big-thing investments tend to have a fairly common Achilles' heel. Namely, that they're fundamentally flawed in their early stages and typically nowhere near profitable. Even though Canada legalized recreational marijuana in October, and numerous U.S. states have given the OK to medical and/or adult-use weed, most pot stocks are still losing money. Eventually, this becomes a problem for companies with soaring valuations.
Last week, Canopy Growth (NYSE: CGC), the largest cannabis stock in the world by market cap, reported its highly anticipated first-quarter operating results and, not surprisingly, it wasn't well-received by investors. While you may have heard some tidbits of information surrounding the company's report, the following five figures are what truly sum up just how bad it was.
Source Fool.com
