Cannabis stocks are flying high on the path to legalization

Pot stocks fly higher on legalization hopes. With CNBC’s Julia Boorstin and Melissa Lee, and and the Fast Money traders, Guy Adami, Tim Seymour, Steve Grasso and James McDonald. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Canopy Growth shares rallied Tuesday after the Canadian cannabis company said it expects to be profitable by the second half of 2022.

“We are building a track record of winning in our core markets, while also accelerating our U.S. growth strategy with the momentum building behind the promising cannabis reform in the U.S.,” said Canopy Growth CEO David Klein in a statement on Tuesday.

Canopy shares closed Tuesday, up 11.9% at $49.09. The stock has gained about 149% over the past year, bringing its market value to more than $17.1 billion. In trading Tuesday, the stock rose to a 52-week high of $50.92.

Earlier, the company reported its third-quarter revenue rose 23% from a year ago, to $153 million Canadian dollars (US$120 million), driven by higher sales of recreational products in Canada and medical cannabis in international markets.

Canopy’s loss widened to C$829 million (US$653 milion ), or C$2.43 per share, from a loss of C$109.6 million, or 26 cents per share, a year ago.

The company said it has been trying to improve its profitability by cutting costs and controlling expenses. These efforts, combined with expected increases in demand, should help it to post a profit later next year.

Over the next 12 to 18 months, Canopy expects to lower its costs by as much as C$200 million.

With the new Biden administration, Canopy Growth is optimistic about the prospects of U.S. cannabis legalization, saying it expects to enter the market this year.

“We anticipate that this legislation will include comprehensive reform to ensure restorative justice, protect public health and implement responsible taxation while ending cannabis prohibition,” said Klein in an earnings call.

According to Owen Bennett, an equity analyst at Jefferies Group, Canopy Growth is continuing to position itself as the leading cannabis company in the U.S for near-term legislative reform, after getting ownership in Acreage and a stake in TerraAscend.

Bennett also cited its Martha Stewart CBD products line, which is already outselling 94% of all U.S. CBD brands just four months after launch, as another factor. The brand recently added CBD pet products.

Canopy Growth issued its medium-term financial targets, estimating compound annual revenue will rise between 40% and 50% from fiscal years 2022 to 2024. Additionally, the company expects to achieve positive operating cash flow in fiscal year 2023 and positive free cash flow for the fiscal year 2024.

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40 Comments

  1. escpointer on April 30, 2021 at 6:16 pm

    CNVCF looks like it is going to be x1000~x5000. This is the real "GME" Stock with huge growth potential



  2. Kevin Nelson on April 30, 2021 at 6:16 pm

    5 thumbs down. I wonder if they are drunk or on pills



  3. Harvey Specter on April 30, 2021 at 6:18 pm

    buy $KERN



  4. angela thompson on April 30, 2021 at 6:20 pm

    I’m buying all I can$$$$$



  5. Jay Money on April 30, 2021 at 6:23 pm

    Planet 13 !! To the moon 🚀



  6. Brett Burton on April 30, 2021 at 6:23 pm

    $BMMJ the most underrated multi-state operator in the MJ space.



  7. SH Media on April 30, 2021 at 6:24 pm

    Cannabis stocks are the future



  8. S Brian Treelife on April 30, 2021 at 6:25 pm

    How come they did not mention that the entire market is in a massive bubble? After legalization in Canada, pot stocks fell flat and they’re only starting to come back now…



  9. Joshua Rios on April 30, 2021 at 6:25 pm

    Sg High football Jerseys



  10. Kayla Cassell on April 30, 2021 at 6:27 pm

    Stock-to-Flow Model(Plan B) – "$100k-288k Bitcoin price 2021 year end"



  11. Rodrigo Ribas on April 30, 2021 at 6:27 pm

    Bought MJ ETF a few weeks ago ! And I’m going to the moon baby 🚀🚀🚀



  12. Home Stuff on April 30, 2021 at 6:28 pm

    stock cannabis medical cannabis omg… cannabis in stocks is just bs :))) its like giving quality on the air and turning it into stocks :)))



  13. JasonTheWorldisYours on April 30, 2021 at 6:28 pm

    I started buying a new position in $SNDL



  14. Philip Dressler on April 30, 2021 at 6:28 pm

    This is the first time in history were all talking about legalization of marijuana the right way



  15. James McRoy on April 30, 2021 at 6:35 pm

    If you told a lot of people earlier this year that bitcoin would go up over 20 and counting , many wouldn’t have thought it possible. It’s happening today, a professional expert helped me know this and so far my crypto has been growing massively working with her .😋



  16. Duncanator on April 30, 2021 at 6:36 pm

    I put $1000 into a weed stock 3 years ago now it’s almost $19000



  17. S Brian Treelife on April 30, 2021 at 6:38 pm

    BEWARE THE SPAMMERS offering investment advice in the comments section… they not only post, but have fake replies to their spam…



  18. Matt Joseph on April 30, 2021 at 6:41 pm

    We’ll need to get high with the left destroying this country.



  19. Nik Zechel on April 30, 2021 at 6:41 pm

    Do some due diligence and consider buying Red Light Holland. The best psychedelic company in the industry that sells natural, organic psilocybin that is currently expanding and producing revenue.



  20. Lucky Lodes on April 30, 2021 at 6:42 pm

    SNDL to $3 tomorrow. APHA TLRY ACB 🚀



  21. Frenetic321 on April 30, 2021 at 6:46 pm

    Luckily Cannabix Tech. just received a long sought patent for a THC breathalyzer 😄



  22. Michael Max on April 30, 2021 at 6:46 pm

    MJNE 🚀



  23. Zorbi on April 30, 2021 at 6:49 pm

    "cannabis stocks are flying high" ( ͡° ͜ʖ ͡°)



  24. Ryan Richard on April 30, 2021 at 6:53 pm

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  25. Matteo Romenghi on April 30, 2021 at 6:53 pm

    TLRY!!!



  26. mac d on April 30, 2021 at 6:55 pm

    CHEKOUT ticker symbol SuGR



  27. kylezell36 on April 30, 2021 at 6:56 pm

    The pot stocks are on fire. How ironic



  28. Michael Dargan on April 30, 2021 at 6:57 pm

    Watch USMJ.



  29. Lorenz Müller on April 30, 2021 at 7:00 pm

    buy acreage?



  30. Kevin Mard on April 30, 2021 at 7:01 pm

    Cresco!!



  31. Maninder Gill on April 30, 2021 at 7:01 pm

    Supreme cannabis!!



  32. roostershooter76 on April 30, 2021 at 7:08 pm

    Profitability, this means that the company has paid back it’s investors, paid off it’s equipment, and is on the road to making real money after the burdensome "First 5 Year" plan. It says a lot when a company doesn’t have access to the Central banking system, yet the still turn this profit!



  33. Rambis on April 30, 2021 at 7:10 pm

    Great video. Can anyone on the planet tell me why symbol FWDG- Future world (cannabis penny stock) is up 2700% (!!!!) in the last couple weeks?????? I can’t make heads or tails out of its climb and i am FreAkiNg out!



  34. TheM0joDoj0 on April 30, 2021 at 7:11 pm

    I remember in 2008 when everyone was certain Pot would soon be federally legal. Welp. Here we are today. I’m in CGC. I’ll believe the US is in the game when the bill is officially approved. Otherwise the only drug US investors are smoking is Hopium.



  35. Rick E on April 30, 2021 at 7:12 pm

    ☁️☁️☁️☁️🚀



  36. Scott Norris on April 30, 2021 at 7:12 pm

    They seem to be doing pretty good without federal legalization.



  37. Martin Mendoza on April 30, 2021 at 7:12 pm

    I got High af today and make $. A good Tuesday



  38. Philip Dressler on April 30, 2021 at 7:13 pm

    And this time around im not hearing too much opposition to legalization of marijuana



  39. Laftis Kuno on April 30, 2021 at 7:14 pm

    add to watch list OPGN rapid testing ::



  40. Adam Hagen on April 30, 2021 at 7:15 pm

    Duh.. Literally every stock is on fire.. If you’re not making money right now you’re an idiot