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While most broader indices trade near all-time highs, Canadian cannabis stocks continue to burn investor wealth in 2024. Ever since Canada legalized marijuana for recreational use in 2018, several cannabis stocks have lost over 80% in market value. For instance, Cronos (TSX:CRON) stock is valued at $1.5 billion by market cap today and is down 87% from record highs.
While the drawdown might be attractive to contrarian investors, Cronos and its TSX peers continue to wrestle with industry-wide issues such as product oversupply, high inventory levels, competition from illegal sales, and negative profit margins.
In this article, I dive deeper to analyze why Cronos is a TSX stock I wouldn’t touch with a 20-foot pole in 2024.
How did Cronos perform in Q1 of 2024?
Cronos Group’s net revenue in the first quarter (Q1) totalled $25.3 million, up 30% year over year. The company’s top-line growth was attributed…
