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Jim Cramer: Why Canopy Growth Is Spending Like 'Mad'

Video Credit: The Street
Published on June 21, 2019 - Duration: 02:01s

Jim Cramer: Why Canopy Growth Is Spending Like 'Mad'

Let's take a look at Real Money Stock of the Day Canopy Growth .

The company reported earnings after the bell Thursday.

The company posted better-than-expected fiscal fourth-quarter revenue but cautioned that its recently approved deal to acquire rights for U.S. based Acreage Holdings will lead to a charge that will have "a materially negative impact on net income in the first quarter of fiscal 2020." Here's what Jim Cramer took away from the quarter.

They need the medicinal to fill in for recreational and, you know, that stock...cannabis is going to end up displacing maybe $250 billion worth of product over the course of the next decade.

Okay.

Remember it's legal in Canada I'm surprised that it didn't do that well in Canada this quarter.

And it is not in this country.

They're doing what you can do under the hemp change, but they're spending like mad because they want to be the only guy and they feel like they can do that.

Maybe Kronos has a lot of money too from Altria, but they just want to make a moat.

They want to make it so nobody else goes into this business because you're going to lose too much money.

And I think it's an effective strategy, but not for shareholders right now.

I still like it because they will only be the winner.

Related.

Canopy Growth Slips as Production, Margins Disappoint

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