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Stock impact report

Could Aurora Cannabis Stock Finally Recover by Year-End? [Yahoo! Finance Canada]

Aurora Cannabis Inc. - Common Shares (ACB) 
Canadian marijuana companies such as Aurora Cannabis TSX:ACB ) have created massive wealth for shareholders in the last five years. Several cannabis stocks, including Aurora Cannabis, were trading near all-time highs when Canada legalized recreational marijuana use six years ago. However, during this period, companies have wrestled with a wide range of industry-related headwinds. For instance, despite the legalization of marijuana, Canadian licensed producers had to compete with the illegal market, leading to cannibalization. Aurora Cannabis and its peers then expanded manufacturing capabilities aggressively, focusing on catering to rising demand. They also considered acquisitions to gain further traction and paid a hefty premium to fuel inorganic growth. Moreover, established players had to contend with rising competition in multiple markets soon after legalization. These factors led to an oversupply of cannabis, high inventory levels, negative profit margins, and goodwill write Show less Read more
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