Isn’t it crazy how quickly things can change? When it comes to the stock market, it’s not unusual to see a company increasing one day and then dropping the next. We are currently seeing this happening to Canopy Growth (TSE:WEED), a Canadian pharmaceuticals company.
What Happened?
Today, Canopy Growth is dropping nearly 10% on the TSE. This might not seem like a significant drop, considering it could be a lot worse, but when you compare it to last week’s increase, you’ll start to see the negative. I mean, it’s only been two days since the company soared more than 10%. So, what happened?
In all honesty, I’m not entirely sure what sparked today’s drop. The Smith Falls-based company has had a relatively successful couple of months, which explains last weeks increase. However, there hasn’t been any news as of late from the company that would suggest the reason why investors seem to be a tad pessimistic about the stock.
In fact, Canopy Growth only recently disclosed that it signed up Prince Edward Island to provide the company with marijuana after it becomes legalized. Additionally, Canopy announced on January 25 that it had closed the previously announced Green Hemp acquisition. Not to mention it was announced on January 26 that InvictusMD (CVE:IMH) had sold the first 120 kg of flower to the company.
As a result, I would have thought that the company was set to see green at least for the next couple of weeks, leading up to its February 14th release of its Q3 financial results. Yet, the opposite has happened, with the company trading down nearly 10%. Currently, Canopy Growth is trading at $30.48, which puts the stock down $2.62, or 7.92%.
The Takeaway
Considering the company has been making significant progress in the ever-expanding cannabis industry, there’s a chance today’s drop was just a one-off. The stock could be back climbing tomorrow, so I think it’s important to keep one eye on this company.
Check back on February 14!
Featured Image: depositphotos/vlastas
