Should You Forget Canopy Growth and Buy This Magnificent Cannabis Stock Instead?

Company Overview - Canopy Growth has seen its stock value decline by over 40% in the past year, with its market cap dropping from approximately $1.5 billion to just under $400 million, and it has not reported a profitable quarter since Q2 2021 [1] - Green Thumb Industries is positioned as a profitable alternative in the cannabis sector, on track for its sixth consecutive year of positive earnings per share [2] Financial Performance - Canopy Growth reported a revenue of $90.4 billion in its fiscal 2026 third quarter, marking a 5% year-over-year increase, but still incurred a net loss of $0.18 per share, which was a 49% reduction in loss compared to previous periods [4] - The company has reduced its net long-term debt by 25% to $225 million, although this was achieved by issuing new stock, leading to a 142% increase in the number of shares outstanding over the past year [5] Market Position and Strategy - Canopy Growth has operations in Canada, Germany, and Australia, and its acquisition of Acreage Holdings aims to establish a presence in the growing U.S. cannabis market [5] - Green Thumb Industries operates 108 dispensaries and 20 manufacturing facilities across 14 states, and is expected to benefit significantly if cannabis is reclassified as a Schedule III substance, which would allow for standard business deductions [6][7] Tax Implications - Currently, cannabis companies face limitations on business deductions due to marijuana being classified as a Schedule I drug, resulting in U.S. cannabis companies paying an additional $2.3 billion in taxes in 2024 [7] - Rescheduling cannabis could enable companies like Green Thumb to invest more in growth, enhancing their profitability [7]