How to trade Canopy Growth stocks
Learn all about the Canopy Growth (CGC) stock price journey, Canopy Growth margin trading, and how to trade Canopy Growth shares with CFD with Capital.com.
What is Canopy Growth (CGC)?
Founded in 2013 by Bruce Linton and Chuck Rifici, Canopy Growth Corporation, also known by the symbol CGC, is a cannabis and cannabinoid-based consumer product company based in Canada. As one of the early movers in the legal cannabis market, the company specialises in the production and sale of medical and recreational cannabis. The Canopy Growth's operations extend beyond cultivation to include research, product development, and retail. Canopy Growth has been instrumental in shaping the legal cannabis industry in Canada and has expanded its reach internationally, exploring markets where cannabis has been legalised for medical or recreational use.
The company first offered Canopy Growth stock to the public in 2014 on the Toronto Stock Exchange under the ticker symbol WEED. It was one of the first publicly traded cannabis companies on a North American stock exchange. In 2018, Canopy Growth shares became available through a New York Stock Exchange listing, but the company transitioned to the Nasdaq Stock Exchange in 2020, under the symbol CGC.
In the 2023 fiscal year, the company’s revenue amounted to some $403m.
What is the Canopy Growth share price history?
The Canopy Growth share price history began in 2014 when it went public on the Toronto Stock Exchange, opening at $30.85 a share. The company experienced quick growth as Canada moved towards legalising recreational cannabis. September 2018 saw Canopy Growth stock price peak at over $545, coinciding with significant investment from beverage giant Constellation Brands and its New York IPO. However, regulatory challenges and slower-than-expected retail rollout led to significant price declines, to below $140 in November 2019.
The share price fell further during the Covid-19 pandemic, and Canopy Growth underwent several rounds of restructuring to streamline operations and reduce costs. These efforts, combined with a focus on expanding into the US market pending legalisation, saw the stock stabilise and show signs of recovery, albeit with continued volatility.
However, 2021 was again tumultuous for the company, as increased competition in the cannabis market affected its market share and revenue. Additionally, Canopy Growth reported substantial financial losses, including a sizable quarterly loss that raised concerns about its ongoing viability.
(Past performance is not a reliable indicator of future results)
What factors might affect the Canopy Growth live share price?
The Canopy Growth live share price can be impacted by a range of key sector-specific fundamental events. Here are a few of the main factors that traders should watch out for.
- Financial/earnings performance: earnings reports reflecting revenue and profit margins can sway investor sentiment. Losses or lower than-expected earnings have historically led to declines in stock price, while performance that exceeds expectations in relation to profits, revenues, market share and other indicators can naturally cause the price to rise.
- Regulatory changes: legal developments in cannabis legislation, such as legalisation in new regions or restrictions, directly impact Canopy Growth's market opportunities. For example, any changes in US federal law regarding cannabis could significantly influence Canopy's operations and stock price.
- Competitive landscape: increased competition from new and existing cannabis companies can erode Canopy's market share and impact its financial results.
- Economic conditions: broader economic factors, including market downturns or recessions, can negatively impact luxury or non-essential spending, including cannabis products. Conversely, factors such as strong economic performance and lower interest-rate environments can mean more disposable income for citizens and better-performing consumer stocks.
- Public perception and market sentiment: the public perception of cannabis and investor sentiment towards cannabis stocks can lead to volatile price movements. Positive news can cause surges in stock prices, whereas scandals or negative press can lead to declines.
What are the Canopy Growth stock trading hours?
The Canopy Growth stock trading hours are Monday to Friday from 2:30am to 9:00pm (UK time), as the Nasdaq Stock Exchange and the Toronto Stock Exchange share the same hours.
If you choose to trade CFDs, you can follow the Canopy Growth stock performance live with the comprehensive Canopy Growth share price chart.
Monitoring the company’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in the share value.
Learn more about world stock market trading hours in our guide.
How to trade Canopy Growth stock with CFDs
If you want to take a position on Canopy Growth shares, you have two options. First, you can buy physical shares in Canopy Growth through the exchange on which it’s listed. In this case, investing in Canopy Growth stock means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time.
Learn about the differences between trading vs investing.
Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Canopy Growth stock market price, and speculate on its price movements without actually owning the asset. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
Unlike physical share ownership, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment or trade, as CFDs tend to be used within shorter timeframes.
Find out more about CFD trading.
Another key difference between buying physical Canopy Growth shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are typically traded on margin, which means that a trader has exposure to larger positions with a relatively small outlay. This amplifies the potential profits, but also the potential losses, making leveraged trading risky.
You can learn how to trade shares in our comprehensive guide to shares trading.
Why trade Canopy Growth stock CFDs with Capital.com?
Trading Canopy Growth CFDs with Capital.com means you’ll enjoy an intuitive, easy-to-use platform, 24/7 support, fair and transparent pricing, along with award-winning education to help build your experience in the markets.* You can seamlessly integrate our smart platform with elite third-party software TradingView and MT4, and refine your strategies with our risk-free demo.
*Awarded best-in-class for education at ForexBrokers.com’s 2024 Annual Awards
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