This 1 Chart Explains Why Aurora Cannabis Has Been Such a Disaster

Aurora Cannabis (NYSE:ACB) remains one of the most widely bought marijuana stocks on the market. It’s even the most popular pot stock on the Robinhood trading platform.

However, Aurora has been an absolute failure for investors. If you’d bought $10,000 of Aurora’s shares three years ago, you’d now have only around $1,430. If you’d invested the same amount at the beginning of this year, you’d have less than $2,900.

This popular pot stock has been like poison for investors’ portfolios, and this one chart explains why. 

Aurora’s dilution solution

The chart below illustrates the inverse relationship between Aurora’s increasing number of diluted shares and its decreasing share price. This relationship makes sense when you think about it. A higher number of shares makes existing shares less valuable. 

ACB data by YCharts

How would Aurora’s shares have performed without all of its dilution-causing stock offerings? There’s no way to know for sure since multiple factors impact a stock’s performance. However, here’s another chart that could help us get a feel for what might have been:

ACB data by YCharts

The only difference between the first and second charts is that the latter includes Aurora’s…