Aurora Shares Plunge Following Disappointing Earnings

Aurora misjudged the market for legal cannabis in Canada

—MKM Partners analyst Bill Kirk to Aurora Cannabis. 

Shares of the Canadian marijuana producer fell 29% yesterday after reporting quarterly results that were less dank than expectations. 

  • Shares hit a four-year low. Remember, four years ago…weed wasn’t even legal in Canada (that happened in 2018).  

What’s going on? Aurora misjudged the market for legal cannabis in Canada, focusing on premium products instead of more popular budget items, reports MarketWatch

  • And that’s what Kirk was getting at. “Aurora grows more stuff that people don’t want than they grow stuff people want,” he said.

Looking ahead…Miguel Martin, Aurora’s third CEO this year alone, admitted the company “slipped from its top position in Canadian consumer,” and his focus is to get back to the top “immediately.” 

Via Morning Brew

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