Why GrowGeneration Stock Dropped 11.5% at the Open Today
Shares of GrowGeneration (NASDAQ: GRWG), a retailer of the hydroponic growing equipment often used to grow marijuana, fell sharply at the open of trading on Thursday, losing 11.5% of its value during the first few minutes. The news that precipitated the swift decline came out before the open, and investors clearly were not pleased with the fourth-quarter and full-year 2021 update the company provided.
On the surface, it's kind of hard to get too upset with the updated guidance GrowGeneration provided for 2021. For example, the current guidance for full-year 2021 revenue in the range of $420 million to $422 million represents more than a 100% year-over-year increase compared to the $193 million it brought in for 2020. Full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now expected to be between $31.5 million and $33.5 million, compared to $19.2 million in 2020. It looks like 2021 was a year of strong growth in many ways.
A hydroponic nursery. Image source: Getty Images.
Source Fool.com