Aurora Cannabis (NASDAQ: ACB) stock price rose slightly on Thursday after the company published encouraging financial results. It rose to $5.80, a few points above this week’s low of $5.57.
Aurora Cannabis earnings
Aurora, one of the biggest companies in the cannabis industry, has done well this year as it jumped by over 20% this year.
This rebound happened because of the rising optimism that the US will pass friendly regulations. One of these regulations is on cannabis banking, which will make it easy for companies in the industry to access banking services.
The other big issue is that the Drug Enforcement Agency (DEA) is planning to reclassify cannabis into a less dangerous drug. These moves would make it easier for companies like Aurora Cannabis to do business across state lines.
Aurora Cannabis share price also did well after Germany and other European countries changed their cannabis reforms.
The most recent news is that the company published encouraging financial results. Revenues jumped by 5% to $67.4 million while the Global Medical Cannabis net revenue rose by 20% to more than $45.6 million.
These results revealed that they were the sixth consecutive quarter of positive EBITDA. It also expects to become free cash flow positive by the end of this year. In a statement, the CEO Miguel Martin said:
“Aurora is the largest global medical cannabis company in nationally legal markets and our leadership is best differentiated by serving the diverse needs of patients across the world. In Q4 2024, global medical cannabis net revenue1 increased 20% year-over-year, supported by the recent acquisition of MedReleaf Australia.”
All these numbers mean that the company’s business is making steady improvement. However, there are risks about the company’s valuation and regulations in the US. For example, there are risks that the DEA will not achieve its goal of reclassifying cannabis after all.
Additionally, the cannanis industry has gotten highly competitive. Most of this competition is coming from mainstream cannanis companies like Cronos. SNDL, and Cannopy Growth.
Aurora Cannabis stock forecast
The daily chart shows that the ACB stock price has been in a deep sell-off in the past few weeks. It has crashed below the 50-day moving average and the important support level at $6.20, its lowest swing on April 30th.
The stock’s Relative Strength Index (RSI) and the MACD indicators have all pointed downwards. Therefore, the outlook is still bearish with the next point to watch being the psychological point at $5.0.
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