Remember that time Canopy completely overestimated how much weed it could sell?
Hey Snackers,
Oh, how far you've come, Twinkies. In 2013 you were bankrupt (and nowhere to be found). Now you're getting your own Twinkies breakfast cereal. Good timing...
Stocks rose Thursday as the heavyweights of cannabis announced earnings.
Objects in rearview mirror don't matter anymore... 2 historic car companies made big announcements yesterday:
"I've been doing this for 16 years"... Palo Alto-based Tesla already boasts hundreds of thousands of e-cars on the road — Elon predicted that electric is the future, even if they're only 1.2% of US car sales today. Daimler is forced to go electric because of Europe's environmental regulations, while Ford merged its love of SUVs and Mustangs with cleaner emissions requirements.
Yes, Tesla's 1st-mover advantage is still there... Most car brands have realized that sticking an "e" on their vehicles is the key to the future. That's meant more competition for Tesla, fast. But making an electric car that goes 200+ miles on 1 charge is hard. And Tesla's long track record just got recognized by a top critic:
Canada's finest... Earth's biggest cannabis company (illegal cartels not included) just signed a joint venture with Drake north of the border. But shares of Canopy Growth plummeted 14% Thursday on word its $57M in quarterly sales were lower than expected. When recreational marijuana was legalized in October 2018, Canopy expected years of pent-up weed demand to drive mega sales. Turns out it overestimated.
Legalize slowly... Canadians are a patient people, so their legalization rolled out in 2 phases. "Cannabis 1.0" was the first phase, including only marijuana leaves and oil. "Cannabis 2.0" is the freshly legal status of more approachable stuff for 1st-timers, like edibles and weed-infused beverages.
Canopy has an advantage in Cannabis 2.0... because its biggest investor is liquor legend Constellation Brands. The Corona-owner piled $4B into Canopy to be partner-in-crime for experimental cannabis-infused alcohol. So while cannabis rival Aurora embraces pot farming and Tilray focuses on medical marijuana, Canopy can invest hard in THC-concocted LaCroix/rosé replacements for Cannabis 2.0.
Disclosure: Authors of this Snacks own shares of Tesla
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