Tilray Stock Jumps 39% on Nasdaq

The stock price of American cannabis company Tilray surged by 39% in just a day and a half on the Nasdaq exchange. This sharp rise was likely driven by the company’s recent financial achievements reported in its latest earnings release.

Tilray Shares See Significant Growth

Tilray’s stock began to rally on July 26, and by Thursday evening, its price had climbed nearly 39%. After a brief correction that saw shares drop by 8%, the stock started to rise again on Friday.

Back in September 2018, before recreational cannabis was legalized in Canada, Tilray’s stock reached an all-time high of $300. However, a prolonged bear market followed, and by June 2023, the share price had plummeted to a low of $1.50—a 200-fold decrease. Despite this dramatic decline, Canaccord investment bank analyst Matt Bottomley predicts that Tilray’s stock will continue its upward trend. He forecasts that shares could rise by 99% by the end of the year, reaching a maximum price of $4.25.

Record Revenue for Cannabis Industry Leader

The rapid increase in Tilray’s stock price began after the company published its financial report for fiscal year 2023, which ended on May 31. In the fourth quarter, Tilray’s revenue grew by 20% compared to the same period in 2022, reaching a record $184 million.

However, Tilray’s total annual revenue decreased by 0.2% to $627 million. At the same time, the company’s adjusted net loss dropped by 29% to $130 million. Tilray’s management expects the company to finally turn a profit in the next fiscal year.

Meanwhile, analyst Andrew Carter is skeptical that Tilray will achieve its goal of increasing earnings before interest, taxes, and amortization to $78 million. He believes the stock is overvalued and should fall to $1.90.

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