Bearish Forecast: Analyst: Aurora Cannabis Stock Could Be Worth $ 0 Soon | message

?? Aurora Cannabis in the midst of a recovery rally
?? Analyst recommends buying the shares or going short
?? Reasons for a stock crash

Aurora Cannabis shares lost more than 50 percent on the NYSE this year – in the meantime, the stock price has even fallen below $ 4. But recently, hope had driven the markets – and also pushed stocks in the Canadian cannabis giant. In November alone, there was a healthy recovery, with Aurora Cannabis shares surging 186 percent.

Amid this uptrend, an analyst is giving an extremely bearish forecast.

Cannabis stocks are booming: invest in the cannabis stock index now! (Screen)

Will Aurora Cannabis Fall To 0?

Gordon Johnson, an analyst at GLJ Research, has little faith in the future development precisely because the stock has performed so strongly over the past month. In particular, the expert referred to the past quarter’s weak business development: While the company was clearly able to beat maintenance on the sales side, it ended up being significantly greater than the minus. In addition, Aurora burned money much faster.

Investors significantly boosting the stock in November was mainly due to the hope that the US cannabis market would open up. Joe Biden’s election victory aroused desires – because under the new US president, the chances of legalization in one of the largest potential cannabis markets in the world should increase significantly. For Johnson, however, there is only one way to respond to the stock rally: “Sell. Or even sell short – because this stock will fall to $ 0,” Yahoo Finance quotes the expert.

Three reasons for a crash

According to the portal, Johnson also gives reasons that speak for an implosion of the Aurora Cannabis stock price.

First, he mentions the oversupply of cannabis on the market, which has caused Aurora to lose money at a rapid pace in the past.

You may also be interested in: Guide The Best Cannabis Stocks To Buy

Johnson is also much less positive about the outlook for growth opportunities in the US market than many investors. Marijuaha investors are misinterpreting the law in the United States, the expert says. He thinks legalization is “highly unlikely,” even under new President Biden, as the US Senate is still firmly in Republican hands. And even if legalization does come, Aurora will not benefit because the company “cannot operate legally” in the United States unless there are changes to Canadian law. editorial staff

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