Tilray’s Wild Cannabis Rally Stalls as Risks Loom

Tilray ( (TLRY) ) has fallen by -7.87%. Read on to learn why.

Tilray (NASDAQ: TLRY) shares have pulled back 7.87% over the past week, as traders cooled on the cannabis rally that briefly sent the stock soaring. The surge was sparked by reports that President Trump is considering reclassifying marijuana from Schedule I to Schedule III, a move that could lower tax burdens and improve banking access for cannabis companies. But as investors reassessed the timeline and limits of this policy shift – which falls short of full legalization – Tilray’s rally faded in a classic “buy the rumor, sell the news” reversal.

Behind the headlines, Tilray’s fundamentals remain mixed, which has added to the cautious tone around the stock. The company has made progress on cost-cutting, targeting $33 million in savings and already achieving about $25 million, and it recently returned to profitability in one fiscal quarter. Recent results showed quarterly revenue of roughly $288 million, up from about $270 million a year earlier, but the company still posted a GAAP net loss and continues to burn cash due to heavy reinvestment. A 10-for-1 reverse stock split improved trading dynamics but did not change the underlying business challenges.

Analysts and commentators remain wary, characterizing Tilray as a high-risk, speculative play rather than a core holding. Investor Symeon Mavroudis, for instance, rates the stock a Hold and stresses that rescheduling is an important but incomplete catalyst, not a “magic button” for the sector. Wall Street sentiment is similarly cautious, with a Moderate Buy consensus but an average price target that actually sits well below recent trading levels, implying downside from here. For now, investors are being reminded that Tilray’s share price will likely stay volatile, driven as much by shifting regulatory hopes as by slow, grinding improvements in its underlying business.