Canopy Growth Corporation saw its shares fall 13% on Wednesday after reporting disappointing earnings that included a revenue decline. Analysts had expected better results from Canopy after Canada launched legal recreational marijuana sales on Oct. 17.
Canopy Growth CEO Bruce Linton doesn’t disagree.
“For sure there’s a marijuana bubble,” he said on Yahoo Finance’s Midday Movers show on Wednesday. “I don’t know somebody who’s not talking about it. And I don’t know somebody who isn’t putting out a press release that says they’re in the business. And when they put the press release out, their company is worth half a billion dollars.”
That being said, Linton says Canopy’s six years of experience in the industry, plus a big recent investment from Constellation Brands, give it an edge amidst the noise.
“We have about four-and-a-half million square feet of production in Canada,” Linton says. Constellation Brands (STZ), which brews Corona and Modelo beer among others “just invested $4 billion U.S. in us after working with us for two years and getting to know us very well. [Read more at Yahoo Finance]