Don't Even Think About Buying Canopy Growth Stock Until You Read This Brutal Reality Check

By Reuben Gregg Brewer – Feb 24, 2026 at 6:55AM ESTKey PointsCanopy Growth is a money-losing marijuana start-up.The company was recently forced to recapitalize its balance sheet even as it moves forward with an acquisition.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: CGCCanopy GrowthMarket Cap$389MToday's Changeangle-down(-3.36%) $0.04Current Price$1.15Price as of February 23, 2026 at 4:00 PM ETCanopy Growth is a penny stock for a reason, so only the most aggressive investors should even be looking at it.Canopy Growth (CGC 3.36%) is a high-risk investment. The stock has lost over 95% of its value since its initial public offering. There was material excitement around marijuana stocks and Canopy Growth a few years ago, but the company has not lived up to Wall Street's perhaps overzealous expectations. Now is probably not the time to jump aboard. Canopy Growth falls to $1 At one point in 2019, a share of Canopy Growth would have cost over $560 (after adjusting for reverse splits). Today, that same share would fetch a little over a buck. It has, basically, gone from being a Wall Street darling to being a penny stock. Penny stocks are high-risk investments that have a history of not working out well for shareholders. Image source: Getty Images. A company doesn't find itself in penny stock land for no reason. One material problem for Canopy Growth is its history of losing money. In fact, after roughly a decade of being a public company, it still hasn't posted positive earnings. It's easy to understand why investors are tired of waiting around. Canopy Growth's good news is also bad news In late 2025, meanwhile, the company announced that it had recapitalized its balance sheet. That is a positive event for the company, but not a good thing from an investor's standpoint. Essentially, the company's financial condition was so weak that it had to cut deals with its bondholders. Notably, the company had to issue warrants as an enticement for the bondholders to play along. If those warrants are exercised, they will lead to shareholder dilution. ExpandNASDAQ: CGCCanopy GrowthToday's Change(-3.36%) $-0.04Current Price$1.15Key Data PointsMarket Cap$389MDay's Range$1.14 - $1.1952wk Range$0.77 - $2.38Volume3.3KAvg Vol28MGross Margin18.25% At the same time, the company is moving forward with its acquisition of MTL Cannabis. This, despite being a money-losing business that just had to recapitalize its balance sheet. Buying MTL Cannabis will strengthen Canopy Growth's position in the medical marijuana space. However, it is a cash-and-stock deal. So it puts more strain on Canopy Growth's balance sheet and will result in shareholder dilution. Everything could work out fine... or not It is entirely possible that Canopy Growth becomes a sustainably profitable business. In fact, it would be easy enough to focus only on the positive side of recent corporate events. But it is also possible that this money-losing penny stock is overextending itself. If that's the case, it could have trouble remaining a going concern. The risk-versus-reward profile for this marijuana stock is tilted too far toward risk for all but the most aggressive investors.Read NextFeb 4, 2026 •By Thomas NielThe Cannabis Stock Big Money Managers Are Quietly BuyingAug 2, 2024 •By David Jagielski, CPA3 Risky Stocks That Are Cash-Burning MachinesDec 15, 2023 •By Steve SymingtonWhy Canopy Growth Stock Plunged 35% This WeekSep 19, 2023 •By Cory Renauer2 Healthcare Stocks That More Than Tripled Recently.

Can They Keep Climbing?Mar 2, 2023 •By Alex CarchidiAdd These 2 Battered Growth Stocks to Your Watch List Now And Wait 3 YearsMar 16, 2022 •By Sean Williams3 Beaten-Down Growth Stocks Billionaire Money Managers Can't Stop BuyingAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedCanopy GrowthNASDAQ: CGC$1.15 (3.36%) $0.04*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.