Why Canopy Growth Stock Fell 12.1% in August
Shares of Canopy Growth Corporation (NYSE: CGC) fell 12.1% during the month of August, according to data from S&P Global Market Intelligence. The Canadian cannabis company reported earnings during the month, which wasn't enough to sustain the company's late July surge, when it announced its direct-to-consumer e-commerce shop in the U.S. Continued struggles in the brick-and-mortar retail business in Canada revealed themselves in relatively low growth numbers and a worrisome decline in gross margins.
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Part of the reason for the August decline was Canopy stock's strong performance at the end of July, after the launch of ShopCanopy.com, its new U.S.-based e-commerce site, on July 27. Given that cannabis is still illegal in the U.S., the site only features Canopy's hemp-derived CBD products; most notably, its new Martha Stewart CBD product line.
Source Fool.com
