Tilray, Inc. (TLRY), a global cannabis-lifestyle goods company, has surged 13.44% in the current market. Consequently, TLRY is trading at $7.98 at the time of the writing.
TLRY Announced Q3 2022 Results
The precipitous rise in the price of TLRY stock could be attributed to the announcement of strong financial results. Hours ago, the company released the results for the third quarter of 2022. The net revenue saw a jump of 23% to $152 million during the quarter, while the gross profit was calculated to be $39.8 million after increasing by 31%. The adjusted EBITDA was estimated to be $10.1 million, while the net income was $52.5 million for the third quarter of 2022.
What’s Going on in Cannabis Industry
Cannabis stocks received a wave of fresh air on Friday after the House of Representatives passed the Marijuana Opportunity Act. The act is intended to make marijuana intake a non-criminal act. The news provided a fresh impetus for cannabis stocks that were struggling in the wake of harsh impacts being imparted by the pandemic across the business sector. Before the news came out, ETFMG Alternative Harvest ETF and AdvisorShares Pure US Cannabis ETF were trading 50% lower than the level attained a year ago, but have since seen an unprecedented increase.
Marijuana Decriminalization Impact on TLRY
The news of Marijuana decriminalization was not able to impart a significant impact on the performance of TLRY stock in particular. In 2018, when the House of Representatives legalized cannabis, TLRY stock rocketed by more than 500%. However, the stock was not able to repeat a similar sort of performance upon the news of marijuana decriminalization.
Final Remarks
Looking ahead, TLRY stock seems to be on the right course. The short-term performance of the stock is expected to exceed the estimates, as fundamentals are looking solid at the moment. In the long run, the news of marijuana decriminalization is expected to further improve the financial performance of the company as well as provide investors with solid returns.
