Shares of cannabis firms have get traction in recent days since cannabis legalization was voted on by citizens in five states of the United States.
For the reason, Canadian companies Canopy Growth Corporation (CGC) and Aurora Cannabis Inc (ACB) gained on over the past three trading days but have lost in yesterday’s session.
The surge in their stock prices began on Friday, when the preliminary results of the US presidential “race” were announced, as well as the votes on the topic of cannabis legalization was counted.
Also Canopy Growth and Aurora Cannabis this week posted earnings above the expectations of analysts on Monday.
Aurora Cannabis Inc (ACB) lost 25.96% on Tuesday after adding 14.51% on Monday when it announced quarterly results for the fiscal first quarter 2021.
The company reported a 6 percent decrease in revenue to $67.8 million, but this was better than the $63.6 million expected by analysts. Net quarterly loss amounted to $109.5 million.
Recreational cannabis sales revenue declined quarterly by 3 percent (compared to last year’s value) to $34.3 million, while medical cannabis revenue rose by 4 percent to $33.5 million. The rise is largely due to a 41 percent growth in the foreign market for medical cannabis sales.
Aurora Cannabis remained restructuring and improving productions at the Aurora Hemp Europe and Aurora Larssen Projects while reducing its debts.
The cash balance is valued at approximately $250 million as of November 6, 2020. Since the beginning of the year, Aurora Cannabis Inc (ACB) shares have decreased 67.98 percent, but have increased 87 percent in the past four days.
On the other end, Canopy Growth Corporation (CGC) was down 3.54 percent on Tuesday after adding 29.37 percent in the past three days.
Revenue growth of 22.5% to a record $135.3 million was announced by the company which in the second quarter, above the $117.2 million forecast.
Losses amounted to $96.6 million, a rise of 42 percent compared to the same reported the company in a year ago quarter.
The biggest gain in revenue came from increased sales of recreational cannabis in Canada, which rose from $44.2 million over the three-month period to $60.9 million. Sales of dry buds rose to $63.9 million from $40.1 million. Global revenues from medical cannabis sales fell from $34.1 million for the quarter to $31.4 million, while other revenues rose from $32.1 million to $43.0 million.
The management of Canopy Growth said it expects to concentrate more on recreational cannabis items (drinks, chewable candy) when the selling of cannabis at the federal level become legalized. Canopy also noted that the acquisition of an American company, Acreage Holdings, would allow it to launch cannabis drinks in Illinois and California next summer.
Thanks to a 17.44 percent increase over the past week, Canopy Growth Corporation (CGC) shares have risen 12.42 percent since beginning of the year.