Pot company Tilray reported Q2 losses, sending the stock reeling despite Mike Tyson admitting to smoking $40,000 of weed every month. | Photo by PUNIT PARANJPE / AFP
Tilray’s stock has fallen nearly 15% since yesterday when they reported larger-than-expected second-quarter losses after the market closed. Overall, the company’s net loss increased to $35.11 million, or 32 cents a share.
Cannabis-related stocks have been steadily dropping over the past few months. Major companies like Aurora Cannabis, Canntrust, and Canopy Growth have seen their stocks drop by more than 30% since May. Even though Tilray can’t escape the slide, that doesn’t necessarily mean the record-setting company is in trouble.
Tilray Has Hope
Tilray’s disappointing second-quarter comes despite the Canadian pot company exceeding revenue expectations. According to IBES data from Refinitiv, analysts predicted Tilray’s revenue to be around $41.1 million but they ended with $45.9 million. And the sell-off continues even though the total kilograms of marijuana sold in the second quarter surged 270% to 5,588kg, up from 1,514kg a year ago.
— Eugene Howard (@EugeneHoward_) August 14, 2019
Investments into cultivation centers in Portugal and Canada have cut into the company’s gross margin. Tilray CEO Brendan Kennedy went on CNBC’s “Closing Bell” to share his positive outlook.
“The way we look at it is its early days, and we’re continuing to invest to build long-term value for our shareholders.”
Tilray will release its first line of CBD products with Authentic Brands in the second half of the year in the U.S.