It’s no secret that the cannabis sector has been incredibly hard hit as of late. The industry was already struggling before the market crash, but the crash only made things worse. Since legalization, cannabis stocks across the board have fallen from peak prices. Yet there are some that have fared better than others, and in some cases, investors are still making a killing if they got in early.
So let’s take a look at how the biggest producers of cannabis have been doing lately, and what an investment of $10,000 would look like today.
Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) has been dubbed the largest producer of cannabis in the world, and it likely still is. However, that didn’t stop the company from plummeting after legalization.
The company made tons of acquisitions, huge investments into research and development, and expanded into the United States where it continues to produce cannabidiol (CBD) and hemp products. It also make significant partnerships that should have put the company on top.
And it has been on top, albeit in a slumping industry. What its partner and investors wanted to see was profit, and that’s still a ways off for Canopy. While 2022 seemed to be the consensus, the company recently stated it would not be profitable by that year.
While Canopy grew an incredible 9,100% from its initial public offering (IPO) to peak prices, shares are now down 56% from that price. Still, a $10,000 investment would be worth $399,990 at today’s share price.
Next up, we have Aphria Inc. (TSX:APHA)(NYSE:APHA) a cannabis stock that had a lot to prove in the last two years. The company is the third-largest producer, but things took a turn when Aphria was accused of undervaluing its Latin America acquisitions — accusations that have caused shares to plummet.
However, with the investigation coming up with nothing, and Aphria actually producing a profit, things have certainly changed. Though not selling at peak prices, given the economic climate, Aphria looks to be on a promising path in the future.
The stock grew 1,360% before falling in share price — and that was a few years back. Today, if you were to have bought during its IPO an investment of $10,000 would be worth $38,935.28 as of writing.
Aurora Cannabis Inc. (TSX:ACB)(NYSE:ACB) might be considered the black sheep of the cannabis industry at the moment. There was a lot of promise with the cannabis producer, as the company had two things going for it.
It looked like it could take the top spot of the largest producer in the world, and for the cheapest cost. Aurora can boast a cost per gram price of under $1.
However, the lack of partnership left the company diluting shares. Recently, the company had to consolidate its share or risk being taken off of the New York Stock Exchange. But things are starting to look up, as the company is now expanding into the United States. With 25 other countries under its belt, this makes it the most international cannabis producer.
Unfortunately, an investment of $10,000 in Aurora would actually be worth $8,510 today, so hopefully things look up for this cannabis producer.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Amy Legate-Wolfe owns shares of Aurora Cannabis and Canopy Growth.