Canopy Growth stock dives on earnings miss, restructuring plan
Yahoo Finance Live examines shares of cannabis brand Canopy Growth.
- My play is Canadian cannabis company Canopy Growth continuing to slash jobs today, announcing what CEO David Klein called, quote, "difficult but necessary cuts" of around 800 jobs, or more than 40% of its total workforce, as it works toward a, quote, "asset-light model." Their CFO Judy Hong saying the right sizing of our Canadian business is expected to significantly reduce our cash costs. The cannabis company said its third quarter revenue fell 28% year over year. The US-listed Canopy shares falling today 17%. It is just ugly. More than 70% over the last 12 months.
The industry as a whole is really plagued by a laundry list of issues. That includes the lack of optimism for any US legislation that includes legalizing or even allowing access to traditional banking or safe. Earlier this week, California-based Medmen, what many felt was the Apple Store of cannabis stores, warned investors it may not have enough money to meet its obligations. Curaleaf, Tilray, the cannabis ETF MJ all falling big on this news. I hate to say it, but it is really desperate times in that industry. I hope Washington is listening. And maybe there is some action, but don't hold your breath.
- Yeah. It certainly is very desperate times. And even just to put that even more into perspective, Canopy Growth was a company with a market value at one point at about $20 billion. Today, it's just over a billion. So it really just illustrates the massive downfall that we have seen not only in Canopy, but really in the sector at large. And you're talking about a company-- this is a second restructuring that we have heard from them in the past year. So tough, tough times. The stock off pretty significantly today.