Why Tilray Shares Have Been Sinking This Week
It's been an interesting couple of weeks for investors of Canadian cannabis and alcohol seller Tilray (NASDAQ: TLRY). Followers of the marijuana sector watched and celebrated when the U.S. House of Representatives passed a federal legalization bill last week. And Tilray stock popped on Wednesday after it reported a surprise profit in its fiscal third-quarter 2022 earnings report for the period ended Feb. 28. But overall for this week, Tilray shares have tanked. As of midday trading on Friday, its stock has dropped about 12.5% since last Friday's closing price, according to data provided by S&P Global Market Intelligence.
The solid earnings report aside, several factors led investors to shed shares of Tilray this week. While the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act was passed by the U.S. House of Representatives last week, the reality is that, like the last time it passed, it is unlikely to get passed in the Senate. Industry backers at least hope for a Senate vote this time, as it never made it to the floor last time.
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Source Fool.com