On Friday, Canopy Growth , a Canadian cannabis company, announced quarterly revenue that fell short of forecasts.
In June, Canopy stated it was “on pace” to achieve positive adjusted EBITDA in the second half of this fiscal year.
After the meme-stocks community helped propel marijuana stocks higher early this year, the stock’s relative strength line, which compares its performance to the S&P 500, has mainly dropped this year.
Canopy lost more than expected in its most recent batch of earnings in June and indicated lockdowns might continue to plague its recreational sector.
Celebrity partnerships with Seth Rogen and Drake, which were formed when Canopy’s previous leadership was ramping up its development, have also fallen by the wayside as the business cuts back.
In Canada, competition has been fierce, with new producers entering the market, putting a damper on growth and marijuana pricing for any one firm.
Customers bought cannabis online primarily on pricing rather than other features, according to management.