Cannabis stocks were rallying throughout the election cycle as the polls pointed toward a Democratic victory. However, that elevated investor enthusiasm is starting to wear off as it’s becoming clear that Congress is more divided on cannabis than expected. Hence relatively smaller players such as Tilray (NASDAQ:TLRY) and Tilray stock are brought down to earth.
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The cherry on top was its lukewarm third-quarter results marred by the slowdown in domestic revenue. However, it has shown potential on the international front with a substantial increase in its international medical cannabis sales. Still, it’s not enough to justify Tilray stock, which is trading at 64% lower than its 52-week high price.
When Canada legalized marijuana back in 2018, several startups looked to gain the first-movers advantage. Most companies continue to have success in the growing Canadian cannabis market. However, Tilray’s domestic revenue slowed in the past couple of years. On the flip side, it is gaining traction on the international front with its medical cannabis products. It would take time for it to make substantial inroads internationally and unlock a whole new avenue for growth.
So-So Third Quarter
Tilray’s earnings results were somewhat disappointing in the past several quarters. Its third-quarter results were no different, as its
