Why Aurora Cannabis Is Getting Hammered Today
Shares of Aurora Cannabis (NYSE: ACB) are printing fresh multiyear lows in premarket trading this morning. Specifically, the cannabis giant's stock dropped by as much as 17% in premarket activity Friday morning in response to the news that longtime CEO Terry Booth will step down. Making matters worse, Aurora also announced a broad cost-cutting plan revolving around job cuts and the revaluation of certain assets acquired during the company's recent expansion phase.
Not even a year and a half ago, Aurora was approaching large-cap status. It had the largest projected production capacity by a country mile, as well as one of the broadest global footprints in the nascent cannabis industry. Then everything fell apart. Booth's hyperaggressive growth-by-acquisition strategy flat-out backfired. Canada's legal cannabis industry simply couldn't overcome the entrenched competition from illicit sales, and the global march toward widespread legalization never made the kinds of gains many anticipated two years ago.
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Source Fool.com
