Disappointment is often relative to what the expectations are and sometimes expectations are too optimistic for no great reason. Analysts were hoping for a few million dollars more in revenue and probably lower losses. Apparently a 191% increase in yearly revenue wasn’t impressive enough.
Canopy Growth is in extreme growth phase which means there’s going to be a lot of money spent. If you’re in the Canadian marijuana industry the time to make moves is now while everyone else is way behind you. While the medical marijuana industry is significant it’s all about the recreational side of the industry. Once it goes legal it’s going to be going from zero to sixty. Any earnings made now are not a great indication of success for the future.
Next quarter should be much more impressive given that they have their oil extraction machine in operation now, new line of gel capsules and the Mettrum facilities in order. This Bruce Linton guy appears to be the visionary of the industry. I like what he’s doing.