Today we are watching…
1. Canopy Growth (#canopyg)
Quarantine is boring. Citizens around the world are slowly locking down to slow the spread of coronavirus, relying on home entertainment to stay busy and to stay sane. Shares in Canopy Growth are on a resurgence. The legal weed dealer enjoyed a flux of new demand last week as the public stockpiled the devil’s lettuce because what better way to destress than to turn your home into a smokebox for three weeks. Cannabis companies need to earn small incremental profits on their sales, otherwise, their crashed stocks will revert right back to their lows after this virus blows over. However, there looks to be momentum at the moment.
2. Netflix (#netflx)
Netflix is the first home entertainment service that springs to mind when faced with three weeks of quarantine, which says a lot about the current state of play in the streaming wars. The heavily in-demand service has reduced picture quality to relieve stress on internet service providers (ISPs) and is hoping to deliver huge subscriber growth to investors soon. However, it’s not able to work on new original shows during this outbreak. That could be a big problem, as non-original content is extremely expensive to license and therefore takes the streamer away from profitability and sends the stock down. Will customers mind?