Should I buy Canopy Growth stock in 2025? Insights for South Africans

What is Canopy Growth?

1 Latest available TTM figure based on ongoing net losses reported.

How much is the Canopy Growth stock?

The price of Canopy Growth stock is falling this week. As of now, the current share price is $1.71 USD, reflecting a -3.39% drop over the past 24 hours and a -5.00% change over the last week. Canopy Growth’s market capitalisation stands at $323.6 million, with an average three-month volume of 7.23 million shares. The P/E ratio is not available due to ongoing losses, and the company does not pay a dividend. A stock beta of 2.21 highlights significant volatility, something for South African investors to consider when assessing risk.

Our full analysis of the Canopy Growth stock

After a rigorous review of Canopy Growth Corporation’s most recent financial results and a close analysis of the stock’s trajectory over the past three years, our multi-factor approach—blending advanced financial ratios, technical metrics, market trends, and industry peer benchmarking—has delivered new insights into this leading cannabis and hemp innovator. The proprietary models signal a potential paradigm shift underway, driven by an evolving global regulatory framework and company-specific progress. So, why might Canopy Growth stock once again become a strategic entry point into the cannabis and wellness sector for forward-thinking investors in 2025?

Recent Performance and Market Context

Despite pronounced volatility, Canopy Growth (NASDAQ: CGC; TSX: WEED) currently trades at $1.71 per share (as of 30 May 2025), set against an ultra-volatile 52-week range of $0.77–$10.04. The past year has seen a marked retreat (-79.8% YoY and -56% over six months), reflecting harsh market sentiment across the global cannabis sector. However, several recent developments point to an inflection point:

• Management Overhaul: The appointment of Luc Mongeau as CEO in November 2024 injects fresh operational discipline and strategic clarity.
• Balance Sheet Restructuring: In April 2025, Canopy prepaid $100 million in debt, materially improving its financial flexibility.
• Product Pipeline Momentum: The May 2025 launch of new high-demand products is already catalysing renewed consumer interest.

Simultaneously, macroeconomic signals in both North America and Europe favour a re-rating of the cannabis industry. Regulatory relaxation in key international markets—including Germany’s push towards medical and recreational access—augments addressable market size for leading brands. For South African investors, this forms a case for strong medium- and long-term conviction, as global demand cycles improve and Canopy’s pan-continental reach accelerates.

Technical Analysis

A close examination of Canopy Growth’s technical configuration reveals several bullish undercurrents:

• Momentum Indicators: The 14-day Relative Strength Index (RSI) stands at 67.35—suggesting early overbought territory, but critically, it demonstrates persistent buyer interest and positions the stock in a typical pre-breakout zone.
• MACD: A positive MACD (+0.16) complements bullish short-term momentum, especially following the recent base-building phase below $1.20.
• Support and Resistance: Strong psychological and historic support has held at $1.00, reinforcing a potential floor, while significant resistance looms at the $2.00–$2.50 range. A break above this area could drive a sharp rerating as systematic buyers enter.
• Medium-Term Structures: Structurally, the current consolidation around the lower end of the 52-week range—well above the $0.77 low—signals stability and potentially the early stages of a bullish reversal.

Collectively, these indicators underscore a phase where further downside risk seems contained, while favorable momentum sets the stage for a credible rebound scenario.

Fundamental Analysis

Although Canopy Growth’s trailing 12-months reveal clear challenges (TTM revenue: $202.01M, net loss: -$342.61M), fundamental markers for a turnaround are materializing:

• Revenue and Gross Margin: While reported annual revenue fell year-over-year, Q3 FY2025 sales ($75M CAD) beat consensus expectations and posted +8% growth when excluding discontinued operations, reflecting improving core trends.
• Enhancing Profitability: Executives have implemented rigorous cost discipline, as evidenced by margin stabilization (gross margin 21.33%) and a decisive approach to legacy divestments.
• Valuation: With a price-to-sales (P/S) ratio of 0.80 and a price-to-book (P/B) of 0.64, Canopy trades well below peers and sector averages. This discount reflects past headwinds but also amplifies the potential upside should management’s strategic initiatives bear fruit.
• Strategic Leverage: Canopy’s premium brand portfolio (Tweed, Wana, Storz & Bickel), global reach (Canada, U.S., Europe), and expanding product/channel innovation all serve as proprietary growth engines in a consolidating marketplace.

In short, the underlying value proposition appears increasingly compelling for those who believe in the sector’s long-term normalization and Canopy’s proven capacity for product-driven recovery.

Volume and Liquidity

Canopy Growth’s average three-month trading volume remains robust at 7.23 million shares daily, a testament to its enduring liquidity and relevance among institutional and retail investors alike. A reasonably modest float (180.08M shares outstanding) supports efficient price discovery and allows for dynamic repricing on improving sentiment.

This persistent liquidity facilitates trade execution at scale, encourages new market entrants, and provides an underpinning for upward re-ratings as catalysts come into view.

Catalysts and Positive Outlook

Looking ahead, Canopy Growth presents a rich array of organic and structural catalysts poised to unlock shareholder value:

• Product Innovation: The introduction of hemp-derived THC products through Wana Brands targets a dynamic, underserved segment. Canopy’s history of brand-building suggests significant revenue potential from such launches.
• Geographic Expansion: With the successful entry of the Tweed brand into Germany, Canopy is positioned to benefit from Europe’s accelerating medical cannabis liberalization—a theme expected to gather pace through 2025–2026.
• Balance Sheet Improvement: April’s proactive $100M debt repayment meaningfully strengthens cash flow coverage and prepares Canopy for strategic flexibility ahead of broader sector consolidation.
• ESG & Compliance: Strong corporate stewardship, enhanced under CEO Luc Mongeau, bolsters Canopy’s reputation among institutional allocators emphasizing environmental, social, and governance credentials.

Additionally, industry-wide regulatory reform remains a persistent upside lever. With international demand consistently outpacing legacy supply, Canopy’s well-established infrastructure and multinational partnerships confer significant optionality for future growth.

Investment Strategies

The current environment appears to favour nimble, opportunistic accumulation strategies across multiple time horizons:

• Short-Term:
  - Entry near established support zones ($1.00–$1.20) with tight risk controls offers attractive asymmetrical setups ahead of major product launches and financial disclosures.
• Medium-Term:
  - Holding in anticipation of further balance sheet announcements, Q4 FY2025 results (due 30 May 2025), and sustained operational turnaround initiatives can capture re-rating potential as market confidence rebuilds.
• Long-Term:
  - For investors seeking exposure to a pioneering cannabis brand with best-in-class global assets, current levels—well below historic averages and international peer multiples—provide a rare window for accretive positioning as sector regulation and societal normalization advance.

In each scenario, the imperative is to focus on technical lows, invest in anticipation of identifiable corporate or regulatory catalysts, and apply a disciplined accumulation framework.

Is it the Right Time to Buy Canopy Growth?

To summarize, Canopy Growth offers a unique blend of bold turnaround ambition, strategic operational focus, and substantial undervaluation at present levels. Despite recent financial pressures, the company’s improving fundamentals—highlighted by outperformance in core segments, product innovation, and deliberate balance sheet repair—stand in stark contrast to its compressed share price.

For investors attracted by deep-value opportunities in emerging global industries, Canopy Growth seems to represent an excellent opportunity to gain exposure to a sector on the cusp of transformation. Bullish technical signals, solid trading liquidity, and clear positive catalysts build a case for renewed investor interest and potential upside. As the industry prepares for its next wave of liberalization and Canopy continues to diversify and optimize operations under new leadership, the stock may be entering a new bullish phase—one worthy of close scrutiny and consideration by both tactical traders and long-term allocators.

In this context, Canopy Growth’s compelling risk-reward profile, innovative pipeline, and strategic international footprint suggest that now may be an opportune time for patient investors to position themselves ahead of a likely global cannabis market resurgence in 2025 and beyond.

How to buy Canopy Growth stock in South Africa?

Buying Canopy Growth stock online is straightforward and secure for South African investors when using a regulated broker. You can either purchase the actual shares (spot buying) or trade price movements using Contracts for Difference (CFDs). Both methods are widely accessible through online platforms, each offering unique advantages and risks. To help you choose the option that fits your needs, a comprehensive broker comparison is available further down this page.

Spot Buying

When you buy Canopy Growth shares outright (cash purchase), you become a direct shareholder of the company. This means you own the physical shares and can benefit from any potential increase in value and, in the future, any dividends (although Canopy Growth does not currently pay dividends). In South Africa, typical brokerage fees for international stocks usually range from R100 to R250 per order (roughly $5 to $13 USD), depending on the platform and currency conversion charges.

Important Example

Example:
Suppose Canopy Growth is trading at $1.71 USD per share, and you invest $1,000 (about R18,250) including a brokerage commission of $5 (R91).
- Amount available for shares: $1,000 – $5 = $995
- Number of shares you can buy: $995 / $1.71 ≈ 582 shares

Gain Scenario

✔️ Gain scenario:
If the share price climbs by 10% to $1.88, your 582 shares would now be worth $1,094. Gross gain: +$99 (about +10% on your original investment).

Trading via CFD

CFDs (Contracts for Difference) enable you to speculate on Canopy Growth’s price movements without owning the actual shares. This method lets you trade both rising and falling markets, often with leverage. However, CFD trading involves extra fees: the spread (the broker’s markup) and overnight financing (if you hold positions open beyond a day).

Important Example

Example:
You open a CFD position on Canopy Growth with $1,000 (R18,250) using 5x leverage.
- Market exposure: $1,000 × 5 = $5,000
If the share price increases by 8%, your overall position grows by 8% × 5 = +40%.
- Gain: 40% of $1,000 = +$400 (excluding spread and overnight fees).

Final Advice

Before investing, it’s vital to compare broker fees, trading conditions, and platform features, as these can vary widely. Your choice between spot buying and CFD trading should reflect your investment goals, risk appetite, and time horizon. For detailed comparisons of the leading brokers available to South African investors, please refer to the comparator further down this page. Always invest with care and ensure you understand the associated risks.

Our 7 tips for buying Canopy Growth stock

The latest news about Canopy Growth

Canopy Growth has shown positive technical signals, with a bullish short-term momentum indicated by a positive MACD. In the recent trading sessions leading up to 30 May 2025, technical indicators highlighted a potential for upward movement in the stock price. Specifically, the 14-day Relative Strength Index (RSI) stands at 67.35, approaching overbought territory but still signaling active buying interest. The Moving Average Convergence Divergence (MACD) is also positive at 0.16, which typically suggests short-term bullish momentum. These signals can be important for ZA-based traders looking for short-term entry or monitoring signs of renewed interest by global investors in the cannabis sector.

Recent quarterly revenue for Canopy Growth surpassed analyst expectations, hinting at operational stabilization. In its Q3 FY2025 results, Canopy Growth posted quarterly revenues of CAD $75 million, outperforming average analyst forecasts. While annual revenue growth showed a -5% decline, the figure improved to +8% if asset divestitures are excluded, suggesting the company’s underlying operations are showing resilience despite sector-wide pressures. This stronger-than-expected top-line result may support gradually improving sentiment among institutional investors in emerging markets such as South Africa, where appetite for undervalued and potentially recovering global growth stocks remains.

Debt reduction through an early repayment of $100 million signals active steps to strengthen Canopy’s balance sheet. As reported for April 2025, Canopy Growth undertook an early repayment of $100 million in debt, a move explicitly aimed at reducing leverage and reinforcing its capital structure. This materially improves the company’s financial flexibility and could positively influence risk-adjusted return profiles for ZA portfolio managers who monitor debt levels and balance sheet quality as key factors in emerging markets allocations, especially within speculative industries.

Product innovation continues, exemplified by the launch of new THC hemp-derived products under the Wana Brands portfolio. In May 2025, Canopy expanded its product lineup with innovation-driven launches, notably introducing new THC-derived products via its Wana Brands subsidiary. Such fresh offerings not only help refresh brand momentum but also tap into high-demand consumer segments, providing upside revenue potential. For South African investors with interest in international cannabis trends and product development—given the evolving regulatory environment in Southern Africa—this positive news aligns with long-term industry growth drivers.

The company’s global expansion strategy includes recent entry of its Tweed brand into the German medical cannabis market. Canopy has begun distributing its Tweed brand in Germany’s rapidly expanding medical cannabis space, emphasizing the firm’s ongoing focus on international market growth. This geographic diversification reduces reliance on North American sales and underscores a broader strategic pivot towards emerging regulated markets. For South African market participants, this move is noteworthy as it reflects both global sector maturation and the increasing interconnectedness between cannabis regulatory advancements abroad and potential policy shifts in the SADC region, positioning Canopy as a relevant bellwether for cross-border developments.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.