Why Tilray stock exploded today
stock Tilray (TLRY 10.98%) It rose 11% on Monday after U.S. Vice President Kamala Harris appeared to favor fully legalizing marijuana. This is clearly a positive development for cannabis lifestyle and beverage companies.
Kamala Harris favors cannabis legalization.
“We need to legalize marijuana,” Harris told a room full of cannabis pardon recipients at the White House on Friday, according to people familiar with the closed-door meeting. In a pre-release speech, Harris also called on the U.S. Drug Enforcement Administration (DEA) to reschedule marijuana “as soon as possible,” calling it “absurd” that marijuana is now considered as dangerous as heroin in its current status in Schedule I. . Drugs under the Controlled Substances Act of 1970.
Marijuana is currently legal for medical use in 38 states and for recreational use in 24 states. Harris’ comments Friday marked the first time the vice president expressed support for legalizing marijuana at the federal level since joining Joe Biden’s running mate in 2020. This is a potentially significant change for the administration ahead of this year’s presidential election.
What’s next for Tilray investors?
Tilray generates about 35% of its revenue from cannabis products. But that total has been declining as the company made significant acquisitions in the alcohol space in recent quarters. Tilray also continues to expand internationally, including announcing approval for its first medical cannabis extract product in Portugal last week.
However, considering that the United States easily represents the world’s largest cannabis market (U.S. cannabis sales are expected to account for about two-thirds of global cannabis revenues in 2024), the seemingly increased prospects for the drug It wouldn’t be surprising to see Tilray rebound in response. It will likely be legalized at the federal level in the United States in the near future.
