Why Canopy Growth Moved Higher Today, but Other Marijuana Stocks Fell
Marijuana investors are having a mixed morning Wednesday, as shares of Canopy Growth (NASDAQ: CGC) move 2.8% higher after reporting what management called a "key inflection point" fiscal Q2 2023 earnings report -- but Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) tumbled. Canopy this morning reported that its Q2 revenues declined 10% year over year to $117.9 million Canadian dollars.
After initially shooting higher on potentially positive news from the 2022 midterm elections and reports of "momentum" at Canopy, both Aurora and Tilray are back in the red as we approach the noon mark -- down about 2.6% and 3.2%, respectively, as of 11:40 a.m. ET.
Canopy blamed the divestiture of a German subsidiary (and the consequent loss of its revenues), plus "increased competition in the Canadian adult-use cannabis market" for its sales decline in Q2 (but said the divestiture had the greatest impact). The logical implication of that statement, therefore, is that "increased competition" doesn't necessarily mean that Aurora and Tilray took business away from Canopy Growth in the quarter -- which helps to explain why Canopy stock is up today ... and why Aurora and Tilray are down.
Source Fool.com
