Why Canopy Growth Stock Could Double in 2024

Canopy Growth (TSX:WEED) stock saw its share more than double in the last two weeks. So, can it do it again with all this good news?

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Cannabis grows at a commercial farm.

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I never thought I would say this again, but Canopy Growth (TSX:WEED) has been on an absolute tear recently. Canopy Growth stock saw its share price surge last week, ending the week up 113% just since March 14!

The reason for the growth could mean that we see Canopy Growth stock double yet again in 2024. So, let’s look at what happened and what it would take to achieve even more.

Government backing

To be clear, the government isn’t backing Canopy Growth stock. However, the president and vice president of the United States have been making some clear moves in support of marijuana legalization. First and foremost, this comes down to the rescheduling of cannabis as a Schedule I narcotic.

This scheduling puts it in the same category as something like cocaine, and VP Kamala Harris called this “ridiculous” two weeks ago. Harris called on the Drug Enforcement Administration (DEA) to speed up the rescheduling — to which the DEA stated it was in the process of taking a look.

This comes as the U.S. gets closer and closer to a federal election in November. Marijuana continues to be a hot topic for President Biden; he referenced it in his recent State of the Union address. And with 40 states currently legalizing the product, it shows that he could have an advantage with ongoing support of at least rescheduling the drug.

Germany folds in

While the news out of the U.S. is promising, it’s not exactly federal legalization. However, Canopy Growth stock had even more great news come its way. It was announced that as of April 1, that Germany would recognize marijuana as a non-narcotic. The news marks a “monumental shift in the legal treatment and cultural acceptance of cannabis,” Canopy Growth stock said in a statement.

Canopy Growth stock went on to state that this provides a unique opportunity for the company to expand — not just through the medical avenue but through its commercial presence in the country. This would be through its current Story & Bickel vaporizer brand as well as the current medical offerings.

This legalization is enormous given that Germany continues to hold the largest gross domestic product (GDP) in Europe. With this exposure, Canopy Growth stock could see massive revenue increases in the next year.

What’s next?

There has been a lot of great news in the cannabis industry. However, there hasn’t been much coming from Canopy Growth stock itself. The company sold off a lot of its production properties as well as non-essential businesses over the last few years. This was to reduce costs and pay off debt. And Canopy Growth stock still has a lot of debt on hand.

This adds to its continued miss of earnings estimates, including the latest quarter. However, what investors seem to be more focused on these days is the future. So, should Canopy Growth stock come up with a clear path to profitability from these recent announcements, this could sincerely generate more investor interest.

With all that being said, Canopy Growth stock has already doubled in the last two weeks. So, can the company do it again? Frankly, I believe so — especially with more news like this coming its way.

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 Canopy Growth Corporation. The Motley Fool has a disclosure policy.

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