Investors in Canopy Growth could probably use a little of their own product right about now. The pot producer's shares lost a fifth of their value at the market open Friday, dragging down shares of its rivals as well.
That's because Canopy's quarterly loss more than doubled to nearly $950 million.
The lockdowns in North America were expected to boost legal pot producers as consumers staying at home stockpiled pot brownies and other cannabis products. But Canopy Growth had to temporarily close most of its retail stores in mid-March. That hammered its top line. Revenue from recreational markets in Canada and internationally slumped by double-digit percentages.
The company also launched a massive restructuring program that included divestitures and layoffs. Non-cash charges related to that bit into its bottom line.
Canopy Growth's investors have been on a wild ride. Once a hot stock that commanded more than $50 a share two years ago, it now trades at less than $18.