Where Will Aurora Cannabis Be in 1 Year?
Canadian cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. But Aurora's acquisition spending spree, rapid expansion plans, and rising costs -- along with some external factors -- have made it hard for the company to turn a profit.
2019 was a dreadful year for the company, over which the stock lost 56% of its value. In contrast, the industry benchmark, the Horizons Marijuana Life Sciences Index ETF, declined 36% on the year.
2020 hasn't exactly been rosy for the company either. The stock is down over 80% and is consistently underperforming its peers. But Aurora is making some aggressive moves in a bounce-back effort. It executed some cost-cutting strategies including shutting down unprofitable facilities and reducing staff, in order to achieve its goal of hitting positive earnings before income, tax, depreciation, and amortization (EBITDA) by the second quarter of fiscal 2021. With two months left before 2020 ends, chances of the company coming back this year might yet be feasible. If its new strategies pan out, how will next year shape up for Aurora? Let's take a closer look.
Source Fool.com