Thinking About Buying Canopy Growth Stock? You May Want to Wait for This to Happen First
Key Points
Marijuana legalization in the U.S. isn't likely to happen anytime soon, and that's weighing on Canopy Growth's stock.
The company's results have been abysmal, and there's little reason to be optimistic that they'll improve anytime soon.
- 10 stocks we like better than Canopy Growth ›
Canopy Growth (NASDAQ: CGC) stock is down 27% this year, and it's trading near its 52-week low, again. Unfortunately, with a stock that's been struggling as badly as Canopy Growth has, it can always seem like it's a cheap buy because of its ongoing tailspin.
The Canadian-based cannabis company once had a bright future due to hopes of widespread marijuana reform in not only Canada but the U.S. as well. Things haven't panned out as expected, and that's resulted in the pot stock crashing more than 99% in five years. At this stage, there's only one thing I would expect could turn the stock's fortunes around: renewed hopes for marijuana legalization in the U.S.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Why the stock's hopes hinge on marijuana reform
Marijuana may be legal in Canada, but that big carrot for Canopy Growth investors has always been that marijuana legalization may happen soon in the U.S. market. And when it does, it could open up massive opportunities for Canopy Growth, potentially leading to profitability one day.
The problem with the Canadian cannabis market is that it is highly competitive and restricted, making it incredibly difficult for a single company to dominate. The result is fragmentation, poor margins, and persistent losses.
Take Canopy Growth's most recent quarterly results as a prime example. For the last three months of 2025, the company's net revenue totaled 74.5 million Canadian dollars, which was roughly flat from the previous year. Meanwhile, even though it's been looking to get leaner, it still incurred an operating loss from continuing operations totaling CA$26.4 million -- higher than the CA$23.8 million loss it incurred in the prior-year period.
Canopy Growth's stock may seem cheap, but it's not worth buying
Canopy Growth has a market cap of around $380 million today, which is a far cry from the more than $12 billion it was worth five years ago when investors were optimistic about marijuana reform. This is a stock that has been an atrocious buy over the years, and unless you have a compelling reason to believe that a stock that's lost more than 99% of its value over the past five years has an amazing catalyst around the corner, the safest option is to just avoid it.
Until marijuana legalization actually has a realistic chance of happening in the U.S. (which doesn't appear to be the case anytime soon), you're likely better off just steering clear of the stock. While it has 'growth' in its name, Canopy Growth isn't much of a growth stock these days, and there are far better options with much less risk to buy right now.
Should you buy stock in Canopy Growth right now?
Before you buy stock in Canopy Growth, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 30, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
