Should You Buy This Cannabis Stock While It's Under $2?

• Canopy Growth has struggled successful caller years owed to important issues successful its location market.

• Although determination has been caller advancement successful the U.S., that is improbable to alteration Canopy Growth's prospects.

• 10 stocks we similar amended than Canopy Growth ›

Buying a banal for a specified $2 whitethorn dependable inexpensive connected the surface, but that's lone the lawsuit if determination are bully reasons to expect it to summation successful worth significantly.

Take Canopy Growth (NASDAQ: CGC), a starring cannabis subordinate successful Canada. Its shares are presently trading for little than $2 apiece, but does that marque the institution an charismatic investment?

Not necessarily. Read connected to find retired why.

Canopy Growth whitethorn beryllium 1 of the largest cookware growers successful Canada, with a immense portfolio of products crossed dried cannabis flower, vapes, cannabis-infused drinks, and more. Beyond Canada, it has a beingness successful respective different countries worldwide.

However, the marketplace northbound of our borderline has been profoundly disappointing. Legalization successful Canada hasn't led to the marketplace size galore had anticipated. With constricted opportunities compared to expectations, important competition, and ongoing ineligible and regulatory challenges, Canopy Growth has not performed good successful caller years.

For that matter, nary Canada-based cannabis subordinate has. Revenue maturation has been slow, astatine best, portion accordant nett losses person been the norm for the full cannabis industry.

So, it turns retired Canopy Growth is trading astatine $2 for a reason, and it's a precise bully one. If it were a company-specific issue, possibly there'd beryllium anticipation that with amended execution, it could crook the tide. But the occupation is systemic. Could determination beryllium a rebound connected the horizon?

Canopy Growth's shares caught occurrence astatine the extremity of 2025 due to the fact that President Trump signed an enforcement bid reclassifying cannabis from a Schedule 1 to a Schedule 3 drug. This marks a important milestone successful the U.S. cannabis manufacture successful years. In practice, this volition marque banking services easier to entree for cookware companies and let them to deduct mean concern expenses, thereby boosting their bottommost line, arsenic good arsenic facilitate probe into the substance. That's bully quality for the sector, but that hardly solves Canopy Growth's problems.

Cannabis is inactive amerciable astatine the national level. That inactive poses important problems, adjacent for well-established multi-state operators successful the U.S. For instance, it remains amerciable to transverse authorities lines with the substance. That keeps expenses higher than they would different beryllium and volition inactive marque it hard for cannabis companies to crook a profit. Furthermore, portion Canopy Growth has a subsidiary based successful the U.S., it volition look aggravated competition, conscionable arsenic it did successful Canada.