The Big Reason Behind Canopy Growth's Woes was its focus on cannabis 2.0 products like edibles, vapes, beverages, etc., instead of dried cannabis with high THC (tetrahydrocannabinol, the chemical in cannabis that gets users "high"). At the end of the day, consumers enjoy the drug due to its "buzz" sensation and want to take the path of least resistance to get there. As a result, the company is running into major issues with unsold inventory and overexpansion of production facilities. These expenses totaled more than CA$564 million in the past year.
Investors should expect Canopy Growth stock to continue its sell-off as worries about its profitability and a botched U.S. expansion mount. The same problems plaguing the marijuana company now are likely to continue well into next year.
https://www.nasdaq.com/articles/where-will-canopy-growth-be-in-1-year-2021-07-31