Canadian cannabis stocks continue to trail the broader markets by a wide margin. For instance, in the last 12 months, shares of Canopy Growth (TSX:WEED) are down 84%, valuing the company at $572 million by market cap.
The marijuana producer currently trades 99% below all-time highs due to its weak fundamentals, negative profit margins, overvalued acquisitions, goodwill write-downs, and high inventory levels. Let’s see if Canopy Growth stock can stage a comeback this year.
The cannabis industry in Canada is broken
Several marijuana producers in Canada are reporting consistent losses due to a variety of industry-wide headwinds.
Canada legalized marijuana for recreational use in October 2018, attracting a large number of players. To gain market share, Canopy Growth and its peers invested heavily to acquire small players and expand their manufacturing capabilities.
However, marijuana is a heavily regulated industry, which resulted…
