Tilray ( (TLRY) ) has fallen by -8.16%. Read on to learn why.
Tilray, a cannabis company, has seen its stock price drop by 8.16% over the past week. This decline comes amidst the company’s plans to undertake a reverse stock split to prevent delisting from the Nasdaq Composite exchange, where its shares currently trade at $0.45. The reverse stock split is aimed at artificially inflating the share price to meet the $1 minimum requirement. Despite these efforts, Tilray continues to face significant challenges, including competition from the black market in Canada and the lack of U.S. federal legalization for recreational cannabis.
Since going public in 2018, Tilray’s stock has plummeted from a peak of nearly $150 to its current low. The company has attempted to diversify its operations by relocating its headquarters to New York City and expanding into the alcohol market. However, these strategies have not been enough to halt the downward trend in its stock price. Analysts have mixed sentiments, with some maintaining a ‘Moderate Buy’ rating, while others suggest a ‘Hold’, reflecting uncertainty about the company’s future prospects.
Tilray’s recent earnings call highlighted both achievements and challenges. The company reported a record cannabis gross margin and significant international growth, particularly in Germany. However, it also faced a substantial net loss due to a $700 million non-cash impairment. Tilray’s strategic focus on long-term profitability over short-term revenue gains is evident in its revised fiscal 2025 net revenue guidance. Despite the current setbacks, Tilray aims to enhance its profitability and operational efficiency, positioning itself for future growth.