Being a marijuana stock investor is hard. There are more unprofitable and indebted companies to choose from than profitable and reliable ones, and your shares are often at high risk of being diluted. While you’d obviously prefer to pick a winner, sometimes it can feel like a win just to hold steady.
Of course, a few companies in the industry are building toward regular and predictable success, and it’s never certain that struggling stocks will continue struggling. If you want to understand which marijuana stocks were laggards and why, you’re in the right place.
Image source: Getty Images.
1. HEXO
HEXO (NYSE:HEXO) lost more than 37% of its value this year, even as its year-over-year quarterly net revenue growth exceeded 100% in the first quarter of fiscal year 2021. It announced major job cuts in November, and it reduced its human resources staff by more than half, from 23 people to 9.
On the bright side, Hexo’s losses have been slowing for six consecutive quarters, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were under $1 million in the most recent quarter. This was made possible by strong improvements in its cost of sales and reductions in its operating expenses. Investors will be pleased to hear that the company looks like it will be profitable early next year should these positive changes continue.
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Being a marijuana stock investor is hard. There are more unprofitable and indebted companies to choose from than profitable and reliable ones, and your shares are often at high risk of being diluted. While you’d obviously prefer to pick a winner, sometimes it can feel like a win just to hold steady.
Of course, a few companies in the industry are building toward regular and predictable success, and it’s never certain that struggling stocks will continue struggling. If you want to understand which marijuana stocks were laggards and why, you’re in the right place.
Image source: Getty Images.
1. HEXO
HEXO (NYSE:HEXO) lost more than 37% of its value this year, even as its year-over-year quarterly net revenue growth exceeded 100% in the first quarter of fiscal year 2021. It announced major job cuts in November, and it reduced its human resources staff by more than half, from 23 people to 9.
On the bright side, Hexo’s losses have been slowing for six consecutive quarters, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were under $1 million in the most recent quarter. This was made possible by strong improvements in its cost of sales and reductions in its operating expenses. Investors will be pleased to hear that the company looks like it will be profitable early next year should these positive changes continue.