From Nasdaq: 2024-04-08 07:42:10

Investors who held onto Tilray Brands (TLRY) stock have seen positive returns, with shares surging over 50% in the past month and 18% in six months. However, over twelve months, the stock has underperformed the S&P 500. The company will announce third quarter fiscal results, with hopes pinned on potential federal legalization.

Tilray’s success hinges on federal legalization. They need U.S. government involvement to reclassify marijuana or pass banking acts. While expanding internationally, the company faces challenges in the Canadian market and awaits consistent profitability. Analysts predict a loss in Q3 but an overall revenue increase for the year.

The U.S. is moving closer to federal legalization, including a potential referendum for recreational marijuana in Florida. This could significantly impact the state’s medical marijuana market, generating $2 billion annually. Tilray and other companies rely on such measures for growth potential. Despite missing Q2 estimates, Tilray saw revenue growth across all segments.

The upcoming Q3 results will show if Tilray can capture a significant market share post-legalization. While the company has shown growth in various segments, the ability to compete effectively in the evolving cannabis industry remains a key question for investors moving forward.



Read more at Nasdaq:: Tilray Brands (TLRY) Q3 2024 Earnings: What to Expect