Shares of Tilray Brands (TLRY 5.44%) declined as much as 12.4% on Tuesday, but were down about 9% as of 10:30 a.m. ET. The pullback comes a day after a dramatic rally in cannabis names sparked by a video posted by President Donald Trump that touted cannabidiol's (CBD) benefits for seniors, and floated the idea of Medicare or Medicaid coverage.
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Why yesterday's pop reversed
On Monday, Tilray jumped about 60%, as the video rekindled hopes for a friendlier policy backdrop and drew momentum traders into the group. Sector ETFs and peers surged in tandem, signaling a broad, sentiment-driven move rather than company-specific news. Today's decline looks like profit taking after the outsized move, with shares still up about 50% this week at the time of this writing.
What the setup looks like now
Tilray remains a policy-sensitive, sentiment-heavy stock. Further, you could argue that it's an extremely speculative investment as well, given that the company still isn't profitable.
At a market capitalization near $2 billion versus fiscal 2025 revenue of about $821 million, investors are paying a low-single-digit price-to-sales multiple for a business still working toward durable profitability and U.S. optionality. That said, any concrete federal progress -- for example, easing tax burdens via rescheduling -- could keep volatility high in both directions.
For long-term investors, the risk-reward now hinges less on one video and more on the cadence of actual policy steps and execution across Tilray's cannabis and beverage portfolios.
