This Wall Street Firm Upgraded Aurora Cannabis After Its Abysmal Q1 Report
Earnings season for cannabis stocks has come and gone, but one theme remains: disappointment.
At this time last year, it was believed that marijuana stocks would see enormous sales growth and be on the cusp of profitability as a result. Canada had launched recreational weed sales on Oct. 17, 2018, and a number of U.S. states were pushing toward legalizing medical or recreational cannabis. In other words, everything seemed to be aligned for pot stocks to succeed.
But things haven't gone as planned, which is pretty much the modus operandi of next big thing investments. Canada has dealt with persistent supply problems since day one of legalization more than a year ago, while high tax rates and a Swiss cheese-like licensing process in some U.S. states have made it extremely difficult for cannabis growers to compete with the black market. This weakness has been reflected in poor operating results almost across the board.
Source Fool.com
