Earlier in November, Canopy Growth (WEED), Aurora Cannabis (ACB), Tilray (TLRY), and Cronos Group (CRON) reporting their earnings. Most of the companies reported disappointing earnings results and missed analysts’ estimates. The expectations might have been too high due to the recreational cannabis hype. Recreational cannabis was legalized for official sale on October 17.
When cannabis companies reported their earnings, they only saw ~30 days of recreational cannabis sales for the quarter. We think that it might be too early to determine whether analysts and investors’ projections were wrong. In this series, we’ll discuss the cannabis industry’s trajectory in the near term.
From the experts
We look at companies that are investing millions of dollars into the cannabis industry to get a sense of the direction. In Canopy Growth’s earnings call, the company broke down the six-month trajectory for recreational cannabis into three phases. In the first phase, cannabis companies will make cannabis available in stores and other platforms that sell cannabis to customers. In the second phase, the companies will ensure that the supply meets the demand. In the third phase, the companies will offer a wider variety of products.