Another Reason Canopy Growth Stock Is On My Watch List Now

The MarketWatch News Department was not involved in the creation of this content.

Dec 17, 2020 (Baystreet.ca via COMTEX) — Interesting news of the departure of Canopy Growth Corp.’s (TSX:WEED)(NYSE:CGC) beverage executive has stirred up tensions among some investors who are focusing now on the success of the nascent cannabis-infused beverage. This important growth area within the cannabis sector is one which is getting a lot of attention from investors and analysts.

Despite accounting for only approximately 1.5% of total sales in the sector, recent regulation shifts to allow for the sale of cannabis 2.0 products such as beverages have stoked investor interest once again in this sector which is primed for growth long-term.

Canopy Growth has actually lagged in its rollout of cannabis-infused beverages, currently sitting second in terms of market share to competitor Hexo Corp. (TSX:HEXO)(NYSE:HEXO). This sub-sector will likely thus be a focal point for the company moving forward, and this executive mix-up could be the catalyst the company needs to take away market share from competitors and dominate in this growing area of the cannabis sector.

I would encourage any investors interested in cannabis stocks to keep a close eye on how cannabis-infused beverages and cannabis 2.0 products progress. For now, choosing companies with the greatest ability to grow and take market share is the best way to go.

From that standpoint, Hexo and Canopy Growth both look like decent picks today. As time goes on, we will see which company takes a dominant position in these products – since this sector is so young, some significant speculation is required to make such investments, pushing these companies out of the purview of some investors.

Invest wisely, my friends.

COMTEX_376373022/2559/2020-12-17T07:15:33

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

The MarketWatch News Department was not involved in the creation of this content.