It’s going to be a busy week for Canopy Growth Corp (TSX:WEED)(NYSE:CGC) as the company has many things on the agenda coming up.
On Monday, shareholders are due to have their votes in to voice their support or opposition of the company’s proposed deal with Acreage Holdings (CNSX:ACRG.U). However, even if it is successful and there’s support from both sides, it’s still nothing more than a small step forward as the deal won’t have a chance of being finalized until the necessary legislation passes in the U.S.
Nonetheless, shareholders need to be on board for the deal to have any chance of going through. With a lot of excitement surrounding U.S. expansion, I’d be surprised if it’s anything less than a slam dunk to go ahead with it.
A bigger uncertainty this week is how the company will do on its Q4 earnings, which are also expected to be released soon. It’s expected that sales will be up significantly from last year and that Canopy Growth will likely land in the red as well. However, whether the results will fall inline with analyst expectations is the big question as that will dictate which direction the stock goes this week.
Over the past three months, Canopy Growth’s share price has struggled, falling more than 9% and it won’t be able to reverse that trend without a strong showing this past quarter.
And given how marijuana stocks have struggled to meet expectations in Canada, I’d be surprised if Canopy Growth didn’t continue to underperform as well. As a result, I could see the stock potentially falling below $50 this week if the earnings fail to impress.