7 Best CBD Stocks To Invest In Right Now

5. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 9

An early mover in the Canadian market, Canopy Growth Corporation (NASDAQ:CGC) engages in the production, distribution, and sale of cannabis and cannabinoid-based products for both adult use and medical purposes. The company consists of several different segments, including Canadian B2B, Canadian medical, rest-of-world cannabis, and Storz & Bickel (a category defining vaporizer technology made in Germany). Canopy Growth’s diversification provides it with a number of potential growth opportunities in the broader cannabis market. Moreover, the company has also recently positioned itself to be a top Canadian entrant in the US market with the acquisition of Wana Wellness, The CIMA Group, Mountain High Products, and most recently, Acreage.

David Klein, CEO of Canopy Growth Corporation (NASDAQ:CGC) stated:

“Completing the acquisition of Acreage marks the final step in establishing Canopy USA as a unified platform which we believe offers significant upside as the Canopy USA portfolio of brands can now capitalize on the rapidly expanding U.S. cannabis market, independent of the need for federal legalization. With a vertically integrated presence across key U.S. states in the Midwest and Northeast, as well as licensing agreements which support asset-light operations in state-legal markets nationally, Canopy USA is well positioned to demonstrate efficient growth ahead.”

Canopy Growth Corporation (NASDAQ:CGC)’s fiscal Q2 2025 report showed that the business is struggling, as it posted a revenue of $45.27 million, down by around 10.2% YoY and missing the analysts’ estimates by $2.63 million. This comes after revenue in Q1 had also fallen by 16% compared to the same period last year. However, the company still witnessed growth across its medical cannabis businesses, with net revenue increasing YoY by 16% in Canada and 12% in international markets. Moreover, Canopy’s Germany-based Storz & Bickel business, known for premium high-margin devices like the Volcano and Venti, delivered an overall net revenue growth of 32% YoY.

Canopy Growth Corporation (NASDAQ:CGC) ended the quarter with $231 million in cash and short-term investments and a total principal debt balance of $574 million.  In October,  the company further reduced its term loan balance by $100 million by making an early prepayment, a step that will also reduce its annualized interest expenses by approximately $14 million.

To sum it up, Canopy Growth Corporation (NASDAQ:CGC)’s future depends on its ability to grow revenue, reduce debt, and capitalize on the US market – something that the company seems well positioned to do.