What Happened?

Shares of cannabis company Tilray Brands (NASDAQ: TLRY) jumped 41.4% in the morning session after U.S. President Donald Trump endorsed the use of cannabidiol (CBD) for senior healthcare in a social media post. 

Over the weekend, Trump posted on his Truth Social platform, suggesting that hemp-derived CBD could 'revolutionize senior healthcare' and serve as an alternative to prescription drugs. His comments acted as a major catalyst for the cannabis industry, sparking a broad rally that lifted shares of other major players like Canopy Growth and Aurora Cannabis. 

This endorsement fueled investor optimism regarding the potential for wider adoption of CBD products and a more favorable regulatory environment, adding to existing hopes for the reclassification of marijuana.

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What Is The Market Telling Us

Tilray’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. But moves this big are rare even for Tilray and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 1.6% on the news that a strike in British Columbia expanded to include the province's cannabis distribution warehouse, halting the acceptance and shipment of orders. 

The job action by the BC General Employees Union (BCGEU) led to the temporary closure of the BC Liquor Distribution Branch’s (LDB) cannabis distribution center. According to a notice from the LDB, this meant that until further notice, orders would not be accepted, assembled, or shipped. This disruption to a major supply channel in Canada created uncertainty for cannabis producers like Tilray. The negative operational news appeared to overshadow a separate, more neutral report from the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), which showed relative stability in the number of banks willing to service cannabis clients.

Tilray is up 10.3% since the beginning of the year, and at $1.61 per share, it is trading close to its 52-week high of $1.77 from November 2024.

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