Aurora Cannabis (ACB) just jumped 250% in two days after reporting third-quarter earnings that crushed expectations.
Not many people saw that huge jump coming. If you missed it – don’t worry.
I see a high probability that the same pattern will repeat itself on Friday morning when the largest cannabis company in the world reports highly anticipated fourth-quarter earnings.
Here’s what you need to know and how to play Friday’s big event.
Aurora Cannabis (ACB) is one of the largest cannabis companies in the world. Shares of ACB jumped 250% in two days last week after reporting third-quarter results that crushed expectations.
Here are some more details from Aurora.
- Net revenue, excluding provisions, of $78.4 million in Q3 2020 was up 18% quarter over quarter. Cannabis net revenue, excluding provisions, was $72.6 million, up 15% over Q2 2020.
- Consumer cannabis net revenue, excluding provisions, was up 24% from the prior quarter to $41.5 million, demonstrating the impact of the launch of Daily Special, Aurora’s value brand, and a full quarter of Cannabis 2.0 products. Medical cannabis net revenue, both Canadian and international, showed healthy growth of 13.5% overall.
These results send an important and encouraging message to investors – cannabis stocks are shifting into a bullish phase.
In 2019, pot stocks fell short of lofty expectations. Today, the sector is crushing more realistic expectations.
Canopy Growth Corp (CGC) is the largest cannabis company in the world with a market cap of $7 billion and operations on four continents.
Canopy is scheduled to report fourth-quarter results on Friday, May 29, 2020, before the opening bell. Aurora’s impressive results tell me that Canopy is also going to crush expectations.