Does Marijuana Rescheduling in the U.S. Make Canopy Growth a Good Buy in 2026?

Core Viewpoint - Canopy Growth has experienced a significant decline in value, losing over 99% in the past five years, and is now considered one of the worst-performing stocks in that period [1] Company Overview - Canopy Growth, once a leading Canadian marijuana company, is currently facing challenges and has shifted focus towards cost-cutting and limiting cash burn [6] - The company has a market capitalization of $500 million, which has garnered attention due to recent news regarding the U.S. rescheduling of marijuana [2] Industry Developments - The U.S. government has rescheduled marijuana from a Schedule I to a Schedule III substance, which will facilitate research and reduce tax burdens for multi-state operators [3][4] - This rescheduling is seen as a potential first step towards broader marijuana legalization, although it does not directly benefit Canopy Growth as a Canadian producer [7] Financial Performance - In the most recent quarter ending September 30, Canopy Growth reported an operating loss of CA$16.9 million (approximately $12.2 million), an improvement from CA$45.9 million in the same quarter the previous year [8] - The company's cash burn rate has decreased significantly, with CA$28.3 million used in the last six months compared to CA$105.6 million in the same period a year ago [8]