ACB Stock Forecast: Aurora Cannabis extends downtrend ahead of September earnings call

NYSE:ACB fell by 1.98% on Friday as the stock continues to get battered.
Investors remain bearish until Aurora can convince of financial improvements heading into 2021.

NYSE: ACB has a tall task on its hands as the cannabis company approaches its quarterly earnings call which presumably will happen at some point in September. Aurora has been bleeding money and earlier this year, investment bank Ello Capital only gave the firm a few more months of liquidity left before bankruptcy. While in hindsight that may have been a tad rash – there remains serious concern about Aurora’s long term sustainability. The stock price is now down to $9.41 per share or an 11% weekly decrease and a 52-week decrease of over 85%. It has been a steep downhill drop ever since Aurora executed a 1 for 12 reverse stock split back in May of this year.

There may be some hope for the long term investors though as Aurora has recently trimmed its operating expenses by closing five of its largest production facilities – as well as its largest greenhouse. Two other production facilities that were in the planning phase of being built have also been canceled – which shows that the pot company is working hard to minimize its costs. As Aurora continues to shed its expenses, the Canadian firm estimates that it can be operationally profitable by early 2021.

ACB Stock News

ACB’s stock shows no signs of slowing down on its downtrend and it may take a tremendously positive earnings call in September to reverse Aurora’s fortunes. Investors and Wall Street will be focussed on Aurora’s EBITDA value as this is one metric that management has projected to be positive by Q1 of 2021. As recent as late June, ACB has reiterated that it is still on pace to reach this goal – but if there are any signs of the company failing this, the stock could be in for another rough quarter to end 2020.

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