Is Aurora Cannabis Stock Going to Make You Richer in 2023?

Aurora-Cannabis-Stock

With a bear market in full force, it might be a perfect moment to invest in falling growth companies such as Aurora Cannabis stock (NASDAQ:ACB). Its stock has dropped by more than 70% in the previous six months alone, and there is no sign of a reversal.

Is Aurora Cannabis stock (NASDAQ:ACB) an investment that will make you wealthy over the next year, or is it too hazardous to handle for the time being?

Why Aurora Cannabis stock could be a good investment

The increase in its top line and the rising value of its brands are the starting points for why Aurora Cannabis stock (NASDAQ:ACB) might be a solid investment. Its quarterly revenue has increased by 327.2% in the previous five years, reaching $39.3 million, thanks to its penetration of the Canadian recreational and medical sectors. It has brands positioned in the recreational cannabis market for anything from inexpensive flowers to high-end vapes, concentrates, and even more unusual product forms like sublingual films. 

Aurora also claims to have the greatest medicinal cannabis market share in its native market of Canada and medical market leadership in Poland. Its medicinal dried flower products are competitive in Germany, and income from its Australian division increased by 300% during the fiscal year 2022. If these nations legalize cannabis, the corporation will have an edge in launching recreational sales ahead of the competition, potentially making investors wealthier.

Aurora Cannabis Stock: Take Care.

Even if management is accurate about Aurora’s adjusted EBITDA performance by the end of the year, the stock remains very volatile. First and foremost, investors must know that achieving consistently positive EBITDA on an adjusted basis is not the same as generating free cash flow, nor is it the same as generating money that can be returned to shareholders. Neither is there much progress to suggest that things are getting better.

Aurora Cannabis stock (NASDAQ:ACB) has a good chance of surviving through 2023 since its 380 million Canadian dollars in cash and equivalents is more than enough to meet its trailing-12-month cash outflows of CA$142 million going ahead, even with the output reduction. However, surviving does not imply enriching shareholders.

As a result, it isn’t the end of the line for this firm just yet, but it doesn’t imply you should invest in it until it seems to be making progress on its twin problems of profitability and sales growth. And, although it theoretically has the potential to make you wealthy if a disruptive event such as cannabis legalization occurs and its stock skyrockets, there are better choices available elsewhere.

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About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.