ACB Stock News: Aurora Cannabis Inc. to face growth restrictions due to high competition and volatile markets
|- TSE: ACB, set at $12.42, will face volatility in the next few months.
- Due to its entry in the U.S. CBD market in May, Aurora Cannabis Inc. experienced a 16% rise (year-over-year revenue growth); however, it missed its growth target.
- The company has stringent cost-cutting plans, which will affect its business potential and growth.
TSE: ACB, currently valued at $12.42, is a well-known pot firm, which is experiencing volatility at the hands of an unstable market. Though its entry in the US CBD market has added and will add to its profitability, Aurora Cannabis Inc. has a long way to go, especially because of the coronavirus outbreak.
At the moment, Aurora Cannabis Inc. is facing an overhaul in its management. It intends to cut costs and streamline its business. However, until it does, its business may suffer negatively.
Essentially, what this will leave the company at, are certain push and pull restraints, which might make the company take a long time to recover if it doesn’t balance it out to ‘keep up’.
Aurora Cannabis Stock Price
With a current share price of $12.42, today’s high of 12.48 and low of 11.90, Aurora Cannabis Inc. is facing volatility in its share price. Since May 11, TSE: ACB, Aurora Cannabis Inc. stock rose by 78.1%. The company had a 52-week high of 123.12 and low of 7.50, which shows its stocks are uncertain and volatile.
Aurora Cannabis Inc. also undertook a $1billion in write down, which will be another restriction in its growth potential for the next 3-5 years.
Though Aurora Cannabis Inc. is struggling because of high competition, volatility and the outbreak of Covid-19, some major factors are working in its favor. These include its investment into R&D, a forthcoming streamlined business, entry in the U.S CBD market (and its forthcoming boom) and its direct partnership with the Ontario government, which will give an edge to it amidst its competition.
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