Tilray Brands (TLRY 3.67%) has been an atrocious investment to hold on to for some time. Over the past five years, shares of the cannabis and alcohol company have crashed a mammoth 98% in value. It has widely underperformed the S&P 500 (it's up 78% over that stretch).
The problem with Tilray's stock is that there isn't really much reason to be excited about its future. It may talk about opportunities in international cannabis markets, but the main reason to invest in the Canadian-based company has been tied to the hope that it could one day enter the U.S. pot market, which remains illegal and off-limits.
Is there any hope still out there for the stock, or is it likely heading toward $0?
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Tilray Brands has continued to struggle with profitability
Whether a stock ends up going to $0 or not is going to ultimately depend on the state of its financials. If they're in bad shape and the company may struggle with liquidity issues down the road, then the stock could certainly one day end up becoming worthless.
In January, Tilray posted its latest quarterly results, and its net loss for the six-month period ending Nov. 30, 2025, was $42 million, which was an improvement from the $120 million loss it incurred in the same period a year ago, but was still a hefty loss nonetheless. And the reasons for the improvement were mainly due to changes in the fair value of contingent consideration and lower amortization expenses.
The cannabis company's cash burn did improve for the period, as Tilray used up just under $10 million during the six-month period versus more than $76 million a year ago. So there has been progress, but the reality is its financials still don't look all that great.
NASDAQ: TLRY
Key Data Points
Is Tilray stock destined to go to $0?
There's a good chance that Tilray does eventually end up going to $0, simply because I believe the company's aggressive pursuit of growth won't pay off. The U.S. likely won't legalize marijuana anytime soon, and costly efforts to expand elsewhere will just lead to more losses and cash burn. This is not a business that's on an encouraging path forward, and things could still get worse for Tilray investors from here on out.
This cannabis stock is a highly risky investment, and there are far better and less risky growth stocks for investors to consider instead.
