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What is Canopy Growth?
Founded in 2013 by Bruce Linton and Chuck Rifici, Canopy Growth Corporation 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 company'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.
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 the share 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 the company 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 less-than-expected earnings have historically led to declines in stock price.
- Regulatory changes: legal developments in cannabis legislation, such as legalisation in new regions or restrictions, directly impact Canopy'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.
- 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.
How to trade Canopy Growth shares with CFDs
If you want to take a position on Canopy Growth shares, you have two options. First, you can buy physical shares in the company 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.
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.
The key difference between buying physical Canopy Growth shares and trading through a derivative is the leverage that is 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, and find out more about trading vs investing with our handy guide.
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Why trade Canopy Growth 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.
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FAQs
Who owns Canopy Growth?
The ownership of Canopy Growth as of 2024 comprises institutions such as Constellation Brands, a leading producer in the food and beverage space, of which Canopy Growth is a subsidiary. Other shareholders have included Susquehanna International and Jane Street.
What is the Canopy Growth market cap today?
The Canopy Growth market cap is dependent on market conditions. If you’re trading this stock, it’s important to check out the Canopy Growth chart frequently to keep on top of price movements and therefore market cap value, as well as retain a strong understanding of the fundamental and technical influences that can cause the price to shift.
What market is Canopy Growth listed on?
Canopy Growth is listed on the Toronto Stock Exchange under the ticker WEED and the Nasdaq Stock Exchange under the ticker symbol CGC.
How to invest in Canopy Growth
You can invest in Canopy Growth through buying and holding the physical share via a stockbroker or investing platform, with the goal to buy low and sell high. Alternatively, derivatives such as CFDs can give you leveraged exposure to the underlying price without ownership. However, leverage is risky and means that you may stand to lose more than your initial deposit.
Where will CGC stock be in 5 years?
Where CGC stock will be in five years depends on market conditions and strategic direction, and management decisions. Fundamental factors like competitive standing, earnings releases, and the regulatory landscape are all key drivers of the CGC stock performance and are all worth following for a complete picture of what might influence price and impact the company’s market position.