Should You Buy Canopy Growth Corp on the Dip?

519

Canopy Growth Corp (TSX:WEED)(NYSE:CGC) has seen its share price drop more than 15% in just the past month. As of Thursday’s close, the stock had fallen to under $57 as it continues to fall further down. The stock has seen a lot of volatility over the past year, reaching highs of more than $76 while also falling below $32 as well.

Predicting where it will go from here is a challenge to say the least. With more competition in the industry, cannabis investors certainly have more options to choose from, especially if they want to take advantage of the more lucrative U.S. cannabis market.

While Canopy Growth is certainly eyeing the U.S. for expansion with its deal with Acreage Holdings Inc (CNSX:ACRG.U) being front and center of that strategy, the problem is that many U.S.-based cannabis firms already have a big advantage.

Stocks like Curaleaf Holdings Inc (CNSX:CURA) and Trulieve Cannabis Corp (CNSX:TRUL) are expanding across the U.S. and they could be well on their way to become the industry leaders.

That’s not to say that Canopy Growth is dead in the water, but it no longer has to worry just about its Canadian competitors. And with a market cap of around $20 billion, Canopy Growth might very well have reached a peak. Over the past few weeks the stock has not been able to get back up to

Ga naar Bron