Last year was a terrible year for cannabis stocks, and Canopy Growth (NYSE:CGC) -- the largest marijuana company in the world by market cap -- did not escape the bloodbath. The Ontario-based pot grower's shares decreased by 21.5% during the 2019 calendar year. By contrast, the S&P 500 climbed by about 30% during the year.
Several issues played a part in Canopy's poor performance last year. Most notably, because Health Canada was slow to issue retail cannabis licenses, there haven't been enough cannabis stores to meet the demand in the Canadian market, particularly in the province of Ontario.
Several company-specific scandals also dragged down the entire industry. For instance, CannTrust Holdings (NYSE:CTST) was in a world of trouble after Health Canada discovered the company had grown weed in several unlicensed rooms for months and sold it. This debacle eventually led to CannTrust's license being taken away by Health Canada.