If You Invested $5,000 in Canopy Growth in 2018, This Is How Much You Would Have Today
Of the many varied and captivating businesses in the cannabis sector, Canopy Growth (NASDAQ: CGC) is one of the more dynamic competitors. With the company recently abandoning its home market to try to enter the U.S., core elements of its strategy and positioning are still in flux. That makes now an interesting, if significantly riskier, time to invest.
But how did the shareholders of the past fare with their investment? Let's settle this issue by calculating how much a $5,000 investment in this company made five years ago would be worth today. Then, we'll assess its probable future trajectory to see if it's appealing to purchase.
The five years between December 2018 and today have been difficult for Canopy for several reasons. First, it overextended itself when trying to seize market share in the hot Canadian cannabis market throughout 2019 and 2020, building up too many manufacturing facilities and retail outlets for the long-term level of demand. That set it up for deep unprofitability, which has proven quite hard to shake despite efforts to shed excessive overhead and orient itself toward the markets where it expects to see the most growth.
Source Fool.com
