Is Canopy Growth (CGC) the Google of Weed?

When CEOs compare a company to Google, it’s usually viewed as a positive for the company. Of course, such comparisons typically actually reference Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), the parent company of Google, which was known as Google prior to 2015. And the comparisons are intended as compliments. After all, Alphabet is one of the world’s largest, most successful, and most innovative companies.

Last week, Canopy Growth Corp. (NYSE:CGC) founder and co-CEO Bruce Linton compared his own company with Google. But Canopy Growth’s market cap and sales are only a sliver of Alphabet’s. Was Linton’s comparison arrogant? Not really. Here’s why Canopy Growth just might be the Google of weed…

About that Google comparison

First, we need to understand the context for what Bruce Linton said. He acknowledged on Yahoo! Finance’s Midday Movers show on Nov. 14, 2018, that marijuana stocks were in a bubble. He added:

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.

Linton said that while there is a bubble in place for marijuana stocks, there are still some “very good companies inside the bubble.” It’s not surprising that he views Canopy Growth as the best of those companies, with its experience, its global operations, and its major investment from large alcoholic beverage maker Constellation Brands (NYSE:STZ).

So how did Google come up during the conversation? Linton alluded to the dot-com bubble of the late 1990s and early 2000s. He said that the best marijuana companies today…

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