2 Red Flags and 2 Green Flags for Tilray Stock
Tilray Brands (NASDAQ: TLRY) is having a rough time. Shares of the Canadian cannabis juggernaut have declined by 44.8% since the start of 2022. And per its latest earnings report for its 2022 fiscal year, published July 28, investors should expect the bumpy ride to continue, at least for another quarter or so.
But after that, things will probably start to look up for the company, potentially in a very big way. Let's analyze a pair of red flags and a couple of green flags impacting Tilray, so you can evaluate whether it's too risky to touch for your appetite or a tarnished growth stock that's worth gambling on.
The first red flag for Tilray is that its adult-use market share is getting eroded in Canada, which is its home market and largest segment by far. In its fiscal Q4 of 2022, it only held 8.3% of the Canadian market, a somewhat steep decline from the 12.8% it held in Q2. That didn't stop its fiscal 2022 net revenue from rising by 22% to reach $628.4 million, though it could spell trouble on the horizon if the trend continues.
Source Fool.com
