Tilray Stock Couldn't Sustain Its Trump Gains. How Earnings Could Help. — Barrons.com

Dow Jones Newswires

By Mackenzie Tatananni

When speculation broke out that President Donald Trump could move to reschedule marijuana as a Schedule III drug before the end of 2025, cannabis stocks soared. Those gains were short-lived.

However, Tilray Brands sees meaningful improvement on the horizon. The company said late Thursday that a potential rescheduling of marijuana in the U.S. would be a boon to its medical cannabis business.

CEO Irwin Simon described the Trump administration's push to reschedule the drug as "one of the most consequential regulatory shifts the industry has seen in decades."

Marijuana is currently classified as a Schedule I substance, indicating no accepted medical use and a high potential for abuse. Rescheduling it would move it from a class of drugs like heroin to a group including combination pain medications.

Expectations for progress on the regulatory front sent Tilray stock from under $10 to a recent closing high of $13.94 on Dec. 16. But the stock has slipped back. Although Trump ultimately signed an executive order directing the attorney general to reclassify marijuana as a Schedule III drug, any changes won't be immediate.

Efforts to reschedule marijuana were underway long before Trump took office. The Justice Department proposed making marijuana a Schedule III substance in 2024. The Drug Enforcement Administration was working its way through the review process when Trump was sworn in last January.

A change at the federal level won't allow for legalized recreational sales, but it will benefit companies in terms of their taxes. Companies dealing in Schedule I drugs are barred from deducting business expenses such as payroll and marketing costs when calculating federal taxable income.

In the meantime, Tilray's latest earnings, which pointed to growth in its cannabis business, may help the stock.

After the closing bell Thursday, Tilray posted what it described as record financial results for its fiscal second quarter. Net revenue rose ticked 3% higher to $217.5 million, topping the $210.9 million consensus among analysts polled by FactSet.

Several business lines struggled. Revenue for Tilray's beverage business declined to $50.1 million from $63.1 million in the prior year, while wellness revenue remained flat.

However, revenue for its cannabis business rose 3% to $67.5 million. The gains were driven by a 36% spike in international cannabis revenue and 6% growth in adult-use cannabis among Canadian customers.

The company narrowed its loss to 41 cents a share from 99 cents a share in the same period last year. Analysts had expected a loss of 21 cents a share.

Shares began rising in after-hours trading and modestly extended their gains on Friday, rising 1.6% to $9.28. That compares with a closing price of $21 on Oct. 9, the stock's highest close in 2025.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Intel, Tilray and Nuscale rise premarket; General Motors falls

Investing.com

Advanced Micro Devices

-17.31%

Investing.com -- U.S. stock futures edged marginally higher Friday, ahead of the release of key unemployment data and a potential Supreme Court ruling in the Trump administration’s tariff policy.

Here are some of the biggest premarket U.S. stock movers today:

Intel (NASDAQ:INTC) stock rose 2.6% after President Donald Trump said he had a "great meeting" with the chipmaker’s chief executive officer, Lip-Bu Tan. The U.S. government took a 10% stake in Intel last August and is now the chip company’s biggest shareholder.
Taiwan Semiconductor Manufacturing (NYSE:TSM) stock rose 0.6% after the world’s largest contract chipmaker reported a 20.45% increase in fourth-quarter revenue from a year earlier, as demand for the company’s products leapt in response to surging interest in AI applications.
General Motors (NYSE:GM) stock fell 2% after the auto giant said in a regulatory filing that it will record $7.1 billion in special charges for the fourth quarter of 2025 tied to its pullback in electric vehicles and restructuring efforts in China.
Tilray (NASDAQ:TLRY) stock surged 10% after the cannabis company reported record net revenue for its fiscal second quarter.
Qualcomm (NASDAQ:QCOM) stock fell 1.6% after Mizuho downgraded the stock to “neutral” from “outperform”, citing mounting headwinds in the global handset market and the loss of Apple modem share.
Nuscale Power (NYSE:SMR) stock surged over 13% after Bank of America upgraded its stance on the energy company to “neutral” from “underperform”, saying the stock is undervalued.
Insmed (NASDAQ:INSM) stock gained 5.6% after the biotech announced that its newly launched bronchiectasis treatment generated approximately $144.6 million in unaudited revenue.
Aquestive Therapeutics (NASDAQ:AQST) stock slumped 45% after the pharmaceutical company announced that the U.S. Food and Drug Administration has identified deficiencies in its New Drug Application for Anaphylm, a sublingual film for treating severe allergic reactions, that preclude labeling discussions at this time.
Polestar (NASDAQ:PSNY) stock fell 0.4% despite the EV maker reporting a sharp rise in fourth‑quarter vehicle sales, helped by its recent strategy of focusing on Europe.

For more detailed stock analysis subscribe to InvestingPro

Risk Warnings and Disclaimers

Add to Favorites

Tilray Brands Sees Opportunity in Cannabis Rescheduling — Market Talk

Dow Jones Newswires

Tilray Brands

-2.31%

Tilray Brands Chief Executive Irwin Simon spoke in favor of President Trump's directive to reschedule marijuana. In December, the president signed an executive order directing the Attorney General to expedite the process of making marijuana a Schedule III drug, which is defined as having a moderate or low risk of dependence, from a Schedule I. Simon said a rescheduling would pave the way for more research and better patient access to medical cannabis in the U.S. Tilray can leverage its experience researching and developing medical marijuana as the regulatory landscape progresses, Simon said. (katherine.hamilton@wsj.com)

Risk Warnings and Disclaimers

Add to Favorites

After-hours movers: Rocket Companies, General Motors, Intel, and more

Investing.com

Advanced Micro Devices

-17.31%

NVIDIA

-3.41%

After-hours movers:

General Motors (GM) fell 2% after it announced a $6 billion charge tied to an EV demand slowdown.

Intel (INTC) rose 2% after President Trump on social media commented on a meeting with its CEO.

Rocket Companies (RKT) rose 6% Opendoor (OPEN) rose 5% and loanDepot (NYSE: LDI) rose 5% after Trump pledged by buy $200 billion of mortgage bonds to drive down mortgage rates.

Tilray, Inc. (TLRY) rose 7% after it reported solid quarterly results. Net revenue increased 3% to $217.5 million in the second quarter compared to $211.0 million.

Revolution Medicines (RVMD) rose 15% as additional information surfaced on a potential takeover price in rumored talks with Merck (MRK), with FT suggesting a price of up to $32 billion.

flyExclusive (FLYX) fell 16% after announcing a planned offer offering of stock.

Risk Warnings and Disclaimers

Add to Favorites

Why Tilray (TLRY) Stock Is Trading Lower Today

Stock Story

Tilray Brands

-2.31%

What Happened?

Shares of cannabis company Tilray Brands fell 9% in the afternoon session after the company's stock fell in a 'buy the rumor, sell the news' reaction as the U.S. government moved to reschedule cannabis.

President Trump signed an executive order directing federal agencies to reclassify cannabis from a restrictive Schedule I to a less-regulated Schedule III substance. While this development was seen as a positive step for the industry, cannabis stocks had already rallied on rumors leading up to the announcement. The confirmation of the news appeared to have prompted investors to take profits. The decline also might have stemmed from disappointment that the change did not greenlight broader recreational use.

The shares closed the day at $11.15, down 9.6% from previous close.

What Is The Market Telling Us

Tilray’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 5.2% on the news that the stock gave back some of its recent gains, which were fueled by reports that the U.S. administration was considering reclassifying marijuana.

The drop followed a significant rally for the stock, which had climbed roughly 75% over the previous five trading days. The initial surge was triggered by news that the administration was actively considering changing marijuana's classification from a Schedule I to a Schedule III substance, viewing it as a less dangerous drug. This potential policy shift created significant volatility, with the stock jumping more than 27% in the prior day's session. The subsequent decline suggested that some investors were taking profits after the sharp run-up, as no final decision on the reclassification had been made.

Tilray is down 23.9% since the beginning of the year, and at $11.12 per share, it is trading 47.1% below its 52-week high of $21 from October 2025.

Risk Warnings and Disclaimers

Add to Favorites

Canadian Cannabis Stocks Down Without Legalization, Banking Access — Market Talk

Dow Jones Newswires

Trump's order to reschedule cannabis to schedule I doesn't legalize cannabis, nor resolve banking access for companies operating in the sector. Canadian cannabis stocks are down Friday, in part because it doesn't legalize marijuana, but also "related to expectation for banking to be in the executive order, based on some reports leading up," Benchmark Equity Research analyst Mike Hickey says. Shares of Canopy Growth, Tilray Brands and Aurora Cannabis, among others, are down, 10%, 7.6% and 8.6%, respectively. However, the analyst remains optimistic, saying that he still sees opportunity for cannabis companies to be granted banking access 2026. (adriano.marchese@wsj.com)

Risk Warnings and Disclaimers

Add to Favorites

Canada Net Change Percentage Gainers & Losers

Dow Jones Newswires

 
                              GAINERS 
 
COMPANY                   SYMBOL      LAST   CHANGE   PERCENT        VOLUME 
-------                   ------      ----   ------   -------        ------ 
Colabor Group                GCL      0.04     0.02     60.00     1,740,277 
Bengal Energy                BNG     0.015     0.01     50.00         2,887 
Talon Metals                 TLO      0.55     0.14     32.53    18,538,726 
Charlotte's Web Holdings    CWEB      0.36     0.08     28.57       574,721 
WildBrain                   WILD      1.93     0.43     28.33     2,186,731 
Aberdeen International       AAB      0.03     0.01     20.00         1,100 
Highlander Silver           HSLV      4.53     0.73     19.21       684,284 
Paladin Energy               PDN      8.86     1.18     15.36       327,867 
Global Atomic                GLO      0.72     0.08     12.50     1,951,132 
TerrAscend                  TSND      1.27     0.14     12.39       611,258 
 
                              LOSERS 
 
COMPANY                   SYMBOL      LAST   CHANGE   PERCENT        VOLUME 
-------                   ------      ----   ------   -------        ------ 
Appili Therapeutics         APLI      0.02    -0.01    -20.00        42,002 
Resverlogix                  RVX      0.09    -0.02    -14.29       185,634 
Intermap Technologies        IMP      2.02    -0.33    -14.04       542,480 
Glacier Media                GVC     0.195    -0.03    -13.33       141,000 
BlackBerry                    BB      5.38    -0.65    -10.78     5,306,797 
Avant Brands                AVNT      0.91    -0.10     -9.90        14,032 
Avalon Advanced Materials    AVL      0.05    -0.01     -9.09       109,060 
Conifex Timber               CFF      0.06    -0.01     -7.69       518,321 
Tilray Brands               TLRY     15.72    -1.24     -7.31       713,682 
Avicanna                    AVCN     0.215    -0.02     -6.52        47,931 
 
 
Only includes stocks with at least 1,000 shares traded today. 
 
Data are delayed at least 15 minutes. 
 
Source: Dow Jones Market Data