Aurora Cannabis (NYSE:ACB): A Leader Making Big Investments...
Aurora Cannabis is another Canadian cannabis giant. While the company already has a very strong market cap, sitting at nearly $8 billion, many (including analysts) argue that it is poised for strong growth ahead. There are a couple of reasons for this.
With the legalization of adult use recreational cannabis in Canada, the biggest hurdle for the company was taken out of the way. Now, the company’s growing production capacity gives it a strong competitive advantage in its sector.
In fact, the company is working on a massive expansion of its 92,000 square foot operation. Back in April of 2018, Aurora announced that it would be expanding its facility by adding a 1.1 million square foot greenhouse.
While most cannabis producers in Canada have a strong focus on the recreational sector, Aurora Cannabis seems to be taking a different approach. The company is focused primarily on the medical side of the cannabis sector. While the medical side of the sector offers a smaller overall revenue opportunity, the company’s leadership and larger margins than seen in recreational cannabis make this a strong choice.
All in all, Aurora Cannabis seems to have made the right moves at the right times to date and continues to do just that. As such, if you’re interested in the cannabis sector, this is one to watch.