2020 is not proving very kind for Cronos (NYSE:CRON). The stock is down around by over 30% as the bubble in cannabis stock peaked and faded by March 2019. Back then Cronos Group stock traded at over $20. Altria’s (NYSE:MO) $1.8 billion investment in Cronos on Dec. 7, 2018, set off the bubble.
Today, Cronos has vastly worse prospects than anyone imagined. As shares head toward its 52-week low, why should investors consider investing in the company at all?
Cronos Group Stock Lacks Positive Catalyst
In the second quarter, Cronos reported revenue growth by 29% to $9.88 million. And despite that, its gross margin of negative 30% is a change in the wrong direction. Last year, gross margins were 53%. Still, the revenue of under $10 million for a company with a market capitalization of nearly $2 billion (a