Aurora Cannabis continues to show recovery with 200% gains

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The once-leading cannabis company seems to show new signs of life

Just as most of the cannabis companies were hit hard for the last year or so, in the same way, when a cannabis venture presents good financial results, it can give a boost to the market. That’s the most recent movement in the cannabis stock market after Aurora Cannabis released some stellar fiscal third-quarter results, which has skyrocketed a whopping 67% this past Friday. Its latest results surely injected a large dose of optimism as opposed to the likes of the past year.

With this new spike in the stock value, which has doubled in two days, the total share value is still down 90% from its all-time high. Still, it is a good scenario for long-time investors willing to take a higher risk for a company that has been exhibiting revenue growth and reducing its cash burn impressively. Even if its earnings per share (EPS) reported a loss of $1.37 – wider than the estimated $0.76 – Aurora impressed the market with great momentum while working on its restructuring plan. It has managed to lower overhead expenses and accomplished a lower-than-expected cash burn.

That has been perhaps one of the common denominators among companies in the cannabis market, its notorious capacity to burn high sums of cash, and Aurora’s cash burn dropped an impressive 40% to $154 million. So, the fact that Aurora has been able to significantly reduce its cash burn is the main reason that investors are coming back to a stock market that some people thought was headed to a sure death.