Canopy Growth Corp. (NYSE:CGC) had a great week for once, gaining 5% as investors ponder the odds that the cannabis giant will get a few good words from corporate parent Constellation Brands Inc. (NYSE:STZ) next week.
Constellation has struggled over the years to justify its $4 billion investment in Canopy. Ambitious talk about cannabis-enhanced beer and other beverages simply hasn’t turned into anything yet.
But with the brewing business on the global skids and Constellation’s flagship brand Corona hit especially hard by its alleged association with the virus, management will need to come up with good news regarding some aspect of the company. Cannabis is a likely suspect there.
If so, investors will cheer. And those who have steered clear of Canopy while waiting for Constellation to establish a strategic plan will finally have a reason to come back.
I hope so. Canopy is the biggest player in the cannabis space, the equivalent of one of the FAAMG giants of Silicon Valley. Once we can see daylight here, the rest of the group will have room to follow.