Tilray (TLRY) closed unchanged at $1.18, despite a day marked by high trading volume, reaching 112.82% of its average. The stock opened at $1.18, fluctuating between a low of $1.15 and a high of $1.19. The lack of price movement comes amid mixed news and investor sentiment.
A major research firm recently lowered its price target for Tilray by $0.50, citing concerns over the company's financial performance. Tilray's Q2 revenue of $211 million missed analyst expectations of $216.3 million, although the company provided a positive revenue guidance for 2025, targeting $950 million to $1 billion. Despite this, the immediate reaction to the earnings miss has weighed on investor sentiment.
On the product front, Tilray's Breckenridge Brewery launched a new seasonal beer, the Spring Forward Grapefruit IPA. However, the limited release is unlikely to significantly impact the company's financials due to the competitive craft beer market. Additionally, a DEA judge postponed cannabis rescheduling hearings, adding uncertainty to the sector.
Social media sentiment reflects investor frustration, with one Reddit user stating, "Done with TLRY," expressing disappointment over the stock's performance and considering reallocating investments to more stable companies. Another user noted, "TLRY is a money black hole," highlighting the ongoing challenges faced by the cannabis sector.
Despite the challenges, Tilray's CEO Irwin Simon remains optimistic, emphasizing the company's strategic focus on high-margin segments and operational advancements. Tilray plans to launch 50-60 new products in 2025 and expand its THC-infused beverage line, which holds significant growth potential.