Today gave “Big Cannabis” a much-needed ray of light. Aurora Cannabis Corp. (NYSE:ACB) is still growing its business through the global pandemic.
Most of the people on Wall Street thought that Aurora’s sales had stalled at $65 million a quarter, roughly where they were last year. That’s simply not what it takes to turn this into a sustainable business.
I cheered to see that the company managed to bring in an extra $10 million. This is enough to move the top line 15%. And from the way the stock caught fire today, I wasn’t alone in cheering.
These companies are still hugely depressed. Their business models are under pressure. But today, Aurora proved that it can become a winner even under extremely negative conditions.
And the competitive field keeps contracting, which will help provide a little relief. Hexo Corp. (NYSE:HEXO) is now under the shadow of being delisted.
It is a game of survival now. Every cannabis stock that falters makes space for the rest. Ultimately, those that end up remaining in the market will have the scale and the freedom to really make money.
The finish line may not be in sight yet, but earnings reports like this one take us closer.