Nearly four months to the day since Canada legalized marijuana, Canopy Growth’s sales have never been buzzier.
The world’s largest pot company yesterday (Feb. 14) posted revenue up 282% from a year earlier for its fiscal third quarter, shifting a total of over 10,000 kg (22,000 lbs) of pot and equivalents.
The news isn’t entirely rosy—rising expenses across marketing, research, and development led to the company overall making a loss—but investors seemed jazzed nonetheless, with the stock rising over 3% today (Feb. 15) alone. It is now trading at more than double the value of its share price a year ago.
It’s not the only cannabis company celebrating new highs: Earlier this week, rival Canadian firm Aurora Cannabis also reported rising sales, with a surging share price up 40% for the year to match.
There’s a clear trend: Canadians are embracing their new rights and buying recreational pot by the bushel. But while their enthusiasm may be giving sales a lift, it’s pushing prices down, Canopy Growth said in its earnings report. Average selling prices were down 12% from a year earlier, while Aurora’s prices were down 20%. Recreational marijuana prices have taken the greatest hit.
The market is growing increasingly crowded. Still, Canopy’s early strides, as well as the backing of US alcoholic-beverage giant Constellation Brands, may prove encouraging to investors. As CNN reports, Canopy is already looking to where it can legally expand in the US. The now-legal hemp market, from which the non-psychoactive substance CBD can be produced, is a particularly appealing target.