The declines by the cannabis companies are seen as only an opportunity to buy ahead of a rebound
Robinhood traders are taking the markets by storm in 2020; most of their purchases offer long-term earnings potential. Canopy Growth and Aurora Cannabis could be among those that could see major growth.
Canopy Growth deals in medicinal cannabis products in the emerging North American and European markets. The company has brought a number of new products like cannabis-infused beverages and vape pens to market recently to meet growing consumer demand. Canopy may not be profitable at this time but has reported a year-over-year quarterly revenue growth of 22%. It has also reduced its production capacity in Canada by nearly half, reduced staff to lower its overhead.
Robinhood traders may be looking at Canopy Growth for its expected growth in the new global cannabis market. Canopy Growths Robinhood holders could see huge gains if things continue to look up for Canopy Growth.
Aurora Cannabis is a second cannabis company that Robinhood investors have favored lately. Aurora plans to close some of its production facilities to become profitable. Aurora has recently increased its production and reduced its prices to improve its financial standing. Robinhood traders might just see Aurora Cannabis as a risk worth taking, as it has tons of growth potential in the world cannabis market. Watch out for these two players, and if you are looking for a couple of new options and can afford to take risk, Canopy Growth, as well as Aurora Cannabis, might be your best buys.