Why Tilray Stock Skyrocketed 54% Last Week

Here’s why Tilray (TSX:TLRY) stock popped by 54% last week to become the top-performing stock on the TSX.

| More on:
Marijuana plant and cannabis oil bottles isolated

Image source: Getty Images

What happened?

The shares of Tilray (TSX:TLRY)(NASDAQ:TLRY) staged a massive rally last week to post their biggest weekly gains since the completion of its Aphria acquisition in May 2021. TLRY stock jumped by a solid 54% in the week ended on March 25 to settle at $10.72 per share — its highest closing level in more than three months. With this, Tilray stock, which was down by 20% a couple of sessions ago, is now trading with 20.2% year-to-date gains.

So what?

While Tilray was the biggest gainer among cannabis stocks last week, the shares of its peers like Aurora Cannabis, Canopy Growth, and Cronos Group also saw strong double-digit gains. While Aurora Cannabis ended the week with 23.5% gains in the week ended on March 25, Canopy Growth and Cronos Group shares popped by about 20.7% and 15.9%, respectively.

This rally in pot stocks on the TSX started on March 24 after a Marijuana Moment report claimed that “the U.S. House of Representatives plans to vote on a bill to federally legalize marijuana for the second time in history.” According to the news report, the House vote on this critically important bill for the marijuana industry is likely to take place this week. Investors’ high hopes from the expected House vote triggered a buying spree in Tilray and other cannabis stocks last week.

Now what?

Tilray is one of the largest cannabis companies in the world by market cap. In January, Tilray revealed that it has achieved $70 million in cost synergies to date from its merger with Aphria. Its leading position in several key cannabis markets could help Tilray post strong top-line growth in the coming years.

That said, if you have been following the cannabis industry for some time, you might already be aware that even a small news or industry update usually makes pot stocks highly volatile. While the latest news about the House vote on the marijuana legalization bill is certainly a big one, its outcome is still unknown. That’s why conservative investors may want to remain cautious before making any positions in Tilray or any other pot stock in the near term, as more related updates could keep them extremely volatile.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Cannabis Stocks

Powder of Cannabis (Drugs), Analysis of Cannabis in laboratory.
Cannabis Stocks

Canopy Growth: Is There Budding Potential in the Cannabis Market?

Canopy Growth stock hit 52-week lows recently on news of needing to re-file on its BIoSteel business, so what now?

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

What’s Happening With Cannabis Stocks in May 2023?

Cannabis stocks were up this week, as the market began to turn, but how long will it last, and is…

Read more »

Cannabis smoke
Cannabis Stocks

Are Cannabis Stocks a Good Buy in May 2023?

If you're going to buy cannabis stocks, these are pretty much the only two I would consider. Even so, you…

Read more »

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Aurora Cannabis: Time to Light Up Your Portfolio?

Here's my take on whether Aurora Cannabis (TSX:ACB) is worth adding to a growth portfolio right now, given its growth…

Read more »

Target. Stand out from the crowd
Tech Stocks

These Undervalued TSX Stocks Are a Bargain in May 2023

If you're willing to bet on a rebound, these are the three TSX stocks I would consider first as they…

Read more »

A cannabis plant grows.
Cannabis Stocks

Tilray Stock Is Scraping 52-Week Lows: Will it Bottom Out Soon?

Tilray (TSX:TLRY) stock remains down 53% in the last year, but when will this company hit the bottom and start…

Read more »

Medicinal research is conducted on cannabis.
Metals and Mining Stocks

2 Canadian Stocks That Are Simply Too Cheap to Avoid

These two Canadian stocks have sunk lower and lower, which is why now could be the right time for long-term…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

1 Marijuana Stock I’d Buy Over Aurora Cannabis

Explore a promising marijuana stock that outshines Aurora Cannabis. Unveil the investment opportunity to boost your cannabis portfolio.

Read more »