2019 for pot stocks has been one for the books, and maybe not in the best way. With uncertainty surrounding the cannabis industry and the looming threat of several issues, many of the most important marijuana stocks, found themselves having heavy downtrends during the course of the year. Although the reasons behind this vary from geographical location to the sector in which a company operates, one of the only connections they share is the high level of volatility.
This is not to say that some companies in the industry did not make gains. During the year, we saw some newcomers in the market, begin to find their stride. From this, we learned that size does not always matter when it comes to pot stocks. Gains were found in both the small and mid-cap sections of the market, as well as some of the guys on top. With that being said, these two pot stocks were not in any way, winners this year. In fact, they are quite the opposite.
Pot Stock To Watch: Will 2020 Be Different
Aurora Cannabis (ACB Stock Report) is a pot stock that had quite a rough twelve months. Although it is one of, if not the most popular pot stock in the market, the company had some less than stellar results. During 2019, Aurora Cannabis lost as much as $2.59 billion in market capitalization. This, as it suggests, is quite a massive loss to take for investors and the company as a whole. One of the major reasons behind this is the large issues surrounding supply in the Canadian market.
Pot Stock To Watch: New Year New PlanWhen legalization came to fruition a few years back, many companies realized that they did not have anywhere near the supply that they needed to compete. This meant that most of the largest companies in the cannabis industry quickly began to invest large amounts of capital in new expansion projects. Aurora Cannabis announced during the year that it would be shutting down its over 1 million square foot facility to conserve its funds. This was quite a bad turn of events as expectations were high regarding the facility. With this in mind, 2020 could be the year for things to turn around, but only time will tell.
Canopy Growth (CGC Stock Report) (WEED) is another one of the largest pot stocks in the market. The company saw some massive volatility hit its share prices during the 2019 year. The year ended up costing around $2.2 billion in market capitalization for Canopy. Although the company came into a massive multi-billion investment only a year or so ago, since that time it has been a heavy spending spree for Canopy.
The company ended up posting massive operating losses in its budget for the year. Additionally, many investors have been unhappy with the amount in which Canopy has spent on the various acquisitions it has made. With that in mind, the company still holds in position as a top three-pot stock by sheer size. For this reason, they are a pot stock to watch going into next month.