Tilray Brands’ stock has surged by 300% since July due to hopes of U.S. marijuana reform, but the company’s fundamentals remain weak with ongoing losses and little growth. Earnings set for Oct. 9 could determine the stock’s future. The hyper-competitive cannabis market poses challenges, making Tilray’s stock vulnerable to sell-offs.

Tilray’s recent fiscal year ended in May with net revenue at $821.3 million, but its core cannabis business saw a 9% decline in sales. Despite diversifying into other products, the company still struggles to turn a profit. The ongoing hype around marijuana reform in the U.S. has not materialized, leaving Tilray as a highly speculative stock.

Investors should be cautious before buying Tilray stock, as its earnings history often leads to sell-offs. The company’s losses have improved but remain significant, indicating a money-losing business with minimal organic growth. The potential for further stock declines after earnings is high, making it a risky investment.

The Motley Fool Stock Advisor team did not include Tilray Brands in their top 10 stock picks, warning investors of the stock’s speculative nature. While past recommendations like Netflix and Nvidia saw significant returns, Tilray may not follow suit. Consider the risks before investing in Tilray stock.

Read more at Yahoo Finance: Should You Buy Tilray Brands Stock Before Oct. 9?