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Canopy Has Some Built in Advantages Over Cannabis Competitors

Canopy Growth's story isn't defined by quarterly financial released. At least not yet. There are some fundamental reasons why the stock has been able to shake off its lack of profitability to jump more than 50% year to date. Constellation Backing The biggest thing Canopy Growth has going for it, which its competitors lack, is the backing of an already established brand like Constellation. The beer and spirit maker invested $4 billion in the company . This bet by the $35 billion company certainly allows investors to rest easier as Canopy now has the cash on hand to expand as it sees fit. International Expansion Speaking of expansion, Canopy easily has one of the broadest international networks, with footprints in Spain, the U.K., Germany, South Africa, Brazil and Chile among others. In June, the company's $3.4 billion option to buy Acreage Holdings was approved by shareholders, giving Canopy a foothold in the lucrative U.S. market. Market Share Lead When Constellation held its earnings call at the start of the year, the company estimated that Canopy would reach a market share above 30% in Canada this year. Canopy currently has a market share of 36%, according to Market Realist. Profitability is the last hill for Canopy to conquer. Only time will tell whether can do so. Related.Canopy Growth Rises Ahead of Shareholder Vote on Acreage Deal Tune into TheStreet's Free Webinar with Akerna's CEO at 1 p.m. today CLICK HERE.
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