Tilray Brands Stock Sees Big Surge
Shares of Tilray Brands (NASDAQ:TLRY) jumped 40.8% in afternoon trading after news surfaced that the Trump administration may relax federal regulations by reclassifying marijuana as a less harmful substance.
This change would downgrade cannabis from being classified as a Schedule I drug—alongside substances like heroin—to a Schedule III drug, which is in line with some common prescription painkillers. While this wouldn’t completely legalize marijuana, it would notably lessen federal oversight. The reclassification could lead to better access for research and boost profitability for cannabis companies. It may bring potential advantages, such as reduced taxes and easing banking regulations that have long restricted financial activities within the industry. Naturally, this news sparked significant rallies throughout the cannabis sector.
This raises the question: Is it a good time to invest in Tilray?
Tilray’s stock has seen considerable volatility, experiencing 90 price shifts of over 5% last year alone. Yet, such a significant jump is rarer for the company, suggesting that this development had a substantial effect on how the market views it.
Just 16 days ago, Tilray’s stock had a notable decline, falling 16.4% after the announcement of a 10-for-10 reverse stock split.
In a reverse stock split, multiple shares combine into one, which raises the share price without altering the overall value of the company. Management argued that this move was designed to make the company more appealing to institutional investors while potentially cutting annual management costs by up to $1 million. However, investors reacted negatively, perceiving such actions as attempts to keep stock prices above minimum listing requirements. This decline in stock price reflects those concerns.
Year-to-date, Tilray is down 15.6%, trading at $12.32 per share, which is 41.3% lower than its 52-week high of $21 recorded in October 2025.
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