These 3 Growth Stocks Are Down More Than 61% -- Is Now the Time to Buy?
So far, 2022 has been a rough year for Canadian cannabis companies like Tilray Brands, (NASDAQ: TLRY) Aurora Cannabis, (NASDAQ: ACB) and SNDL (NASDAQ: SNDL). Tilray and SNDL are both down by over 59%, and Aurora's shares are performing even worse, losing more than 77% of their value.
Considering that the market-tracking SPDR S&P 500 ETF Trust is only down by around 21.9%, it's no shock that shareholders are second-guessing their investments in these so-called growth stocks, nor is it surprising that potential buyers are hesitating to start new positions. Are any of these three businesses appealing long-term purchases, or are the headwinds they're facing genuine dealbreakers?
The most important thing that investors need to know is that none of these three cannabis companies are profitable, nor is it likely that they will be profitable anytime soon. In fact, with the exception of SNDL, their quarterly gross margins have actually gotten worse over the last three years. Take a look at this chart:
Source Fool.com
