Canopy Growth Faces Severe Challenges Amid Market Struggles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy CGC?
Source: Fool
- Stock Price Collapse: Canopy Growth's share price plummeted by 58% in 2025 and 46% the previous year, indicating ongoing struggles in the market and severely undermining investor confidence.
- Earnings Report Expectations: The company is expected to report cannabis net revenue of CA$51 million for Q3 FY2026, a 12% increase year-over-year, but still faces challenges with profitability that could impact stock performance.
- Significant Reduction in Net Loss: Canopy Growth managed to reduce its net loss from CA$128.3 million to just CA$1.6 million, primarily due to lower impairment and restructuring expenses, indicating some financial improvement, yet ongoing scrutiny is necessary.
- High-Risk Investment: While there may be a short-term uptick in stock price following earnings, the long-term growth outlook for Canopy Growth remains bleak, having burned through over CA$88 million in operational costs over the past year, suggesting limited future growth potential.
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Analyst Views on CGC
Wall Street analysts forecast CGC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CGC is 3.78 USD with a low forecast of 1.80 USD and a high forecast of 5.76 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 1.170
Low
1.80
Averages
3.78
High
5.76
Current: 1.170
Low
1.80
Averages
3.78
High
5.76
About CGC
Canopy Growth Corporation is a Canada-based cannabis company. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. The Company delivers innovative products from owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. Its segments include Canada cannabis, and Storz & Bickel. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. Its Storz & Bickel segment includes the production, distribution, and sale of vaporizers. In addition, it serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Canopy Growth Faces Ongoing Profitability Challenges
- Market Access Challenges: Despite being one of the largest publicly traded cannabis producers in Canada, Canopy Growth has remained unprofitable due to its inability to enter the U.S. market, which significantly hampers its long-term growth potential.
- Investor Dynamics Shift: In Q3 2025, the largest net buyers of Canopy stock were not traditional asset managers but major quantitative trading firms and hedge funds, with Susquehanna International Group increasing its position by approximately 2.75 million shares, indicating institutional interest in the company's future.
- Stock Price Volatility: Following a brief surge in December due to President Trump's executive order, Canopy's stock has since declined, currently trading at $1.14 with a market cap of $396 million, reflecting market uncertainty regarding its future trajectory.
- Uncertain Future Outlook: With the upcoming 13-F filings next month, the market will gain clarity on whether these institutional investors participated in the selling, suggesting that investors may need to remain on the sidelines to assess Canopy's next moves.
See More
Canopy Growth's Stock Plummets 99%, Dismal Outlook Persists
- Dismal Financial Performance: In Q2 of fiscal 2026, Canopy Growth reported a 6% year-over-year increase in net revenue to CA$66.7 million ($49.3 million), yet its net loss per share improved only to CA$0.01 ($0.0074) from CA$1.48 ($1.09) a year prior, indicating ongoing financial struggles despite slight improvements.
- Significant Industry Challenges: Over the past five years, nearly all pure-play cannabis companies have underperformed, with Canopy Growth facing severe issues such as stringent regulations, fierce competition, and illegal sales channels that undermine legitimate businesses, leading to persistent poor market performance.
- Limited Impact of Regulatory Changes: Although the recent U.S. reclassification of cannabis to Schedule III may facilitate better banking access and business expense deductions, Canopy Growth's historical failures in Canada suggest that such regulatory changes will not fundamentally resolve its deep-rooted challenges.
- High Investment Risks: Even if Canopy Growth stands to benefit from regulatory changes in the U.S., its past failures in Canada and the structural issues within the industry cast a long shadow over its future prospects, making the stock a risky investment.
See More
Canopy Growth Faces Severe Challenges Amid Market Struggles
- Stock Price Collapse: Canopy Growth's share price plummeted by 58% in 2025 and 46% the previous year, indicating ongoing struggles in the market and severely undermining investor confidence.
- Earnings Report Expectations: The company is expected to report cannabis net revenue of CA$51 million for Q3 FY2026, a 12% increase year-over-year, but still faces challenges with profitability that could impact stock performance.
- Significant Reduction in Net Loss: Canopy Growth managed to reduce its net loss from CA$128.3 million to just CA$1.6 million, primarily due to lower impairment and restructuring expenses, indicating some financial improvement, yet ongoing scrutiny is necessary.
- High-Risk Investment: While there may be a short-term uptick in stock price following earnings, the long-term growth outlook for Canopy Growth remains bleak, having burned through over CA$88 million in operational costs over the past year, suggesting limited future growth potential.
See More
Functional Beverage Market Set for Explosive Growth
- Market Surge: The global functional beverage market is projected to reach $179.26 billion by 2026, driven by health-conscious consumers shifting away from high-sugar drinks, indicating a structural reset that attracts significant capital inflow.
- New Product Pilot: Doseology Sciences launched pilot production of non-nicotine, caffeine-based energy pouches in January 2026, emphasizing predictable energy delivery to meet modern consumer demands for portable, functional beverages, which is expected to enhance market competitiveness.
- Strategic Acquisition: Doseology acquired the Feed That Brain brand for $400,000, further expanding its footprint in the functional market while appointing Joseph Mimran as Strategic Advisor to bolster product development and compliance capabilities, supporting future growth.
- Industry Collaboration: Splash Beverage Group entered a joint venture with BAAD Ventures to tap into the rapidly expanding THC beverage market, leveraging both companies' distribution networks and brand-building expertise, which is expected to significantly enhance market share and supply chain efficiencies.
See More
Functional Beverage Market Expected to Reach $179.26 Billion
- Market Growth Potential: The global functional beverage market is projected to reach $179.26 billion by 2026, driven by health-conscious consumers shifting towards low-sugar, transparent-label products, creating significant market opportunities for related companies.
- Doseology New Product Pilot: Doseology Sciences initiated pilot production of non-nicotine, caffeine-based energy pouches in January 2026, utilizing a portable, non-liquid delivery method aimed at providing controlled energy release, aligning with modern consumer demands for functional beverages.
- Canopy Growth Financial Restructuring: Canopy Growth successfully extended its debt maturities to 2031 through strategic refinancing transactions, expected to secure approximately C$425 million in cash flow, enhancing the company's liquidity and competitive position in the market.
- Splash Beverage Joint Venture Expansion: Splash Beverage Group entered the rapidly growing THC beverage market through a joint venture with BAAD Ventures, planning to expand into six new markets, leveraging both parties' distribution networks and brand-building expertise to increase market share.
See More
Canopy Growth Corp (CGC) Shares Surge 2.63% Following Trump's Cannabis Rescheduling Order
- Policy Shift: President Trump's recent executive order urging the DOJ to reschedule cannabis to Schedule 3 is seen as the most significant federal cannabis policy shift in over 50 years, potentially alleviating tax burdens and driving CGC shares up by 2.63%.
- Financial Outlook Improvement: Rescheduling would allow cannabis companies to deduct standard operating costs, significantly enhancing their financial outlook, although CGC is currently trading below both its 20-day and 100-day simple moving averages, indicating short-term weakness.
- Market Volatility: While the market anticipates a surge in CGC shares due to rescheduling, investors should remain cautious of the high volatility in the sector, particularly with ongoing restrictions on U.S. cannabis companies listing on major exchanges, which could impact long-term performance.
- Earnings Outlook: Investors are looking forward to CGC's earnings report on February 6, with analysts expecting a reduced loss of three cents per share compared to a loss of 79 cents last year, although revenue estimates of $50.59 million are down from $61.67 million, indicating ongoing challenges for the company.
See More
Canopy Growth Faces Ongoing Profitability Challenges
- Market Access Challenges: Despite being one of the largest publicly traded cannabis producers in Canada, Canopy Growth has remained unprofitable due to its inability to enter the U.S. market, which significantly hampers its long-term growth potential.
- Investor Dynamics Shift: In Q3 2025, the largest net buyers of Canopy stock were not traditional asset managers but major quantitative trading firms and hedge funds, with Susquehanna International Group increasing its position by approximately 2.75 million shares, indicating institutional interest in the company's future.
- Stock Price Volatility: Following a brief surge in December due to President Trump's executive order, Canopy's stock has since declined, currently trading at $1.14 with a market cap of $396 million, reflecting market uncertainty regarding its future trajectory.
- Uncertain Future Outlook: With the upcoming 13-F filings next month, the market will gain clarity on whether these institutional investors participated in the selling, suggesting that investors may need to remain on the sidelines to assess Canopy's next moves.
See More
Canopy Growth's Stock Plummets 99%, Dismal Outlook Persists
- Dismal Financial Performance: In Q2 of fiscal 2026, Canopy Growth reported a 6% year-over-year increase in net revenue to CA$66.7 million ($49.3 million), yet its net loss per share improved only to CA$0.01 ($0.0074) from CA$1.48 ($1.09) a year prior, indicating ongoing financial struggles despite slight improvements.
- Significant Industry Challenges: Over the past five years, nearly all pure-play cannabis companies have underperformed, with Canopy Growth facing severe issues such as stringent regulations, fierce competition, and illegal sales channels that undermine legitimate businesses, leading to persistent poor market performance.
- Limited Impact of Regulatory Changes: Although the recent U.S. reclassification of cannabis to Schedule III may facilitate better banking access and business expense deductions, Canopy Growth's historical failures in Canada suggest that such regulatory changes will not fundamentally resolve its deep-rooted challenges.
- High Investment Risks: Even if Canopy Growth stands to benefit from regulatory changes in the U.S., its past failures in Canada and the structural issues within the industry cast a long shadow over its future prospects, making the stock a risky investment.
See More
Canopy Growth Faces Severe Challenges Amid Market Struggles
- Stock Price Collapse: Canopy Growth's share price plummeted by 58% in 2025 and 46% the previous year, indicating ongoing struggles in the market and severely undermining investor confidence.
- Earnings Report Expectations: The company is expected to report cannabis net revenue of CA$51 million for Q3 FY2026, a 12% increase year-over-year, but still faces challenges with profitability that could impact stock performance.
- Significant Reduction in Net Loss: Canopy Growth managed to reduce its net loss from CA$128.3 million to just CA$1.6 million, primarily due to lower impairment and restructuring expenses, indicating some financial improvement, yet ongoing scrutiny is necessary.
- High-Risk Investment: While there may be a short-term uptick in stock price following earnings, the long-term growth outlook for Canopy Growth remains bleak, having burned through over CA$88 million in operational costs over the past year, suggesting limited future growth potential.
See More
Functional Beverage Market Set for Explosive Growth
- Market Surge: The global functional beverage market is projected to reach $179.26 billion by 2026, driven by health-conscious consumers shifting away from high-sugar drinks, indicating a structural reset that attracts significant capital inflow.
- New Product Pilot: Doseology Sciences launched pilot production of non-nicotine, caffeine-based energy pouches in January 2026, emphasizing predictable energy delivery to meet modern consumer demands for portable, functional beverages, which is expected to enhance market competitiveness.
- Strategic Acquisition: Doseology acquired the Feed That Brain brand for $400,000, further expanding its footprint in the functional market while appointing Joseph Mimran as Strategic Advisor to bolster product development and compliance capabilities, supporting future growth.
- Industry Collaboration: Splash Beverage Group entered a joint venture with BAAD Ventures to tap into the rapidly expanding THC beverage market, leveraging both companies' distribution networks and brand-building expertise, which is expected to significantly enhance market share and supply chain efficiencies.
See More
Functional Beverage Market Expected to Reach $179.26 Billion
- Market Growth Potential: The global functional beverage market is projected to reach $179.26 billion by 2026, driven by health-conscious consumers shifting towards low-sugar, transparent-label products, creating significant market opportunities for related companies.
- Doseology New Product Pilot: Doseology Sciences initiated pilot production of non-nicotine, caffeine-based energy pouches in January 2026, utilizing a portable, non-liquid delivery method aimed at providing controlled energy release, aligning with modern consumer demands for functional beverages.
- Canopy Growth Financial Restructuring: Canopy Growth successfully extended its debt maturities to 2031 through strategic refinancing transactions, expected to secure approximately C$425 million in cash flow, enhancing the company's liquidity and competitive position in the market.
- Splash Beverage Joint Venture Expansion: Splash Beverage Group entered the rapidly growing THC beverage market through a joint venture with BAAD Ventures, planning to expand into six new markets, leveraging both parties' distribution networks and brand-building expertise to increase market share.
See More
Canopy Growth Corp (CGC) Shares Surge 2.63% Following Trump's Cannabis Rescheduling Order
- Policy Shift: President Trump's recent executive order urging the DOJ to reschedule cannabis to Schedule 3 is seen as the most significant federal cannabis policy shift in over 50 years, potentially alleviating tax burdens and driving CGC shares up by 2.63%.
- Financial Outlook Improvement: Rescheduling would allow cannabis companies to deduct standard operating costs, significantly enhancing their financial outlook, although CGC is currently trading below both its 20-day and 100-day simple moving averages, indicating short-term weakness.
- Market Volatility: While the market anticipates a surge in CGC shares due to rescheduling, investors should remain cautious of the high volatility in the sector, particularly with ongoing restrictions on U.S. cannabis companies listing on major exchanges, which could impact long-term performance.
- Earnings Outlook: Investors are looking forward to CGC's earnings report on February 6, with analysts expecting a reduced loss of three cents per share compared to a loss of 79 cents last year, although revenue estimates of $50.59 million are down from $61.67 million, indicating ongoing challenges for the company.
See More
