Why Canopy Growth Stock Tanked on Thursday
After posting the latest in a long string of discouraging quarterly earnings reports, Canopy Growth (NASDAQ: CGC) saw its share price dive by almost 8% on Thursday. That was notably worse than the generally flat performance of the S&P 500 index.
That morning, Canopy Growth divulged that its net revenue inched up by 3% year over year to land at nearly 109 million Canadian dollars ($81 million) for its first quarter of fiscal 2024. Net loss narrowed considerably, to CA$41.8 million ($31.1 million) from the year-ago deficit of over CA$2.1 billion ($1.6 billion). The latest shortfall equated to CA$0.07 ($0.05) per share.
Although both key line items showed improvement, little about the latest set of earnings comforted investors. In one particularly alarming passage in the Canadian marijuana company's 10-Q regulatory filing, it wrote that its current financial struggles "raise substantial doubt about the Company's ability to continue as a going concern," for at least the next year.
Source Fool.com
