Cue the "high" jokes... Canopy Growth, Earth's biggest cannabis company, whipped up a surprise Friday: Stronger-than-expected revenues and a smaller-than-expected loss. Sales were up 62% from last quarter, and operating expenses were down 14%. That combo forms a soothing CBD balm on the bruised cannabis industry:
Aaaand exhale... Canopy's strong earnings lifted its own stock 13% on Friday. Then it passed the fun to the right — pot peers Aurora and Tilray both jumped almost 8%, and so did smaller cannabis companies in the US and Canada.
Is this the end of the dip?... Despite the bubble-hype, cannabis can still sit back and enjoy some trends in its favor: It's seen as a safer alternative to opioids, US states have legalized, and CBD-infused-everything is killing social stigma. Young industries just need time to mature, hash out their issues, and self-select leaders. But every cannabis company is different — Canopy rival Aurora just reported an almost $1B loss over just 3 months.