Why Tilray Shares Got Smoked This Week
The stock of Canadian cannabis company Tilray Brands (NASDAQ: TLRY) has dropped more 50% since the company reported its fiscal third-quarter results in early April. A good portion of that decline occurred this week alone with shares down 17.5% midway through the final trading day, according to data provided by S&P Global Market Intelligence.
From a macroeconomic perspective, investors are fleeing growth stocks like Tilray as inflation data continues to create fear and uncertainty. The company has told investors it has an ambitious goal of realizing $4 billion in annual revenue by the middle of 2024. With less than $500 million in sales for the nine months ended Feb. 28, 2022, that goal seems more than just ambitious. And with the general economic outlook growing more and more murky, investors are likely beginning to discount the possibility that it will be achieved.
CEO Irwin Simon has been clear that he wants to position his company for the potential federal legalization of marijuana in the U.S. But with that potential legislation not within a realistically visible timeline, Tilray has pivoted somewhat.
Source Fool.com
