Another day, another penny stock surge and another rush of money into Aurora Cannabis. It took one day after the most recent marijuana earnings report from the company to cause the company’s stock to rise by more than 25% Tuesday, only to fall back down to the level it was trading at earlier in the day.
On Monday, Aurora Cannabis reported earnings for the first quarter of its fiscal year (July to December 2018), which ended in April.
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The results weren’t necessarily great. The company was able to grow its revenue, which only amounted to $10.1 million, but realized a loss on the operations of the company. The company didn’t gain any revenue from the Aurora Sky facility, the 10-million-square-foot building that it’s constructing in Smiths Falls, Ontario, but it lost money from its partner, Canopy Growth, on its stake in the facility.
However, just because the company lost money doesn’t mean it has anything to worry about. In fact, it only experienced growth of 13% and double-digit revenue growth in two other provinces in the first quarter of its fiscal year, while its share price increased at least four times over the past 24 hours.
When the data for Canopy Growth (CGC) came out, Aurora’s revenue was almost identical to that of CGC, but its stock is more than four times higher. CGC’s stock price, however, has almost tripled over the past month alone.
Naturally, there is no reason that Aurora Cannabis’ stock won’t start doing the same thing. However, there isn’t a single marijuana business in the world that’s growing revenues that quickly.