Are Canopy Growth Stocks Still a Buy?

Few cannabis companies have risen to the heights that Canopy Growth has. But is the Canadian cannabis giant still all it’s hyped up to be?

In many ways, Canopy Growth (NYSE:CGC) set a lot of benchmarks for the cannabis industry. Founded in 2014 and originally called Tweed Marijuana Inc., Canopy Growth was the first federally regulated, licensed, publicly traded cannabis producer in North America, trading on the Toronto Stock Exchange as WEED. By 2016, Canopy’s valuation surpassed the $1 billion mark — a feat never previously achieved by cannabis companies.

Canopy’s stardom was further accelerated when Constellation Brands purchased a 9.9% stake in Canopy for CAD 245 million, once more pushing the cannabis industry, and Canopy Growth, into the mainstream. Since then, Constellation has doubled down on the Canadian cannabis giant, now owning a 38.6% stake after investing over $4 billion into Canopy Growth.

However, despite all of the accolades and triumphs achieved by CGC, Canopy Growth still exists within the tumultuous cannabis industry, and within the Canadian industry no less.

The cannabis industry was battered and bruised throughout 2019, and in the case of Canada, issues of oversupply, a lack of brick and…