Tilray Stock Starting to Rebound

TilrayMost analysts recommend a hold on Tilray Inc. (NASDAQ: TLRY) but there is a compelling argument for new investors to come on board. This medical cannabis and cannabinoid company has seen its losses increase even while revenues have soared. Here’s why it’s still a stock to watch and a possible strong addition for your portfolio.

The company reported net losses of $30.3 million for the first quarter, increasing from losses of $5.2 million a year ago. However, revenue increased three-fold, from $7.8 million to $23.0 million. One reason for the loss is that the company invested $32.6 million into new production operations in Canada. Tilray has struggled to source high quality cannabis in the Canadian market, which is why it’s investing so heavily in its own operations.

While spending will hurt the bottom line in the meantime, it is a good move for the company moving forward. Tilray will rely less on external suppliers, which could reduce costs and increase the stability of its product chain. Stock has started to rebound in May, and continued revenue growth is a strong reason for new investors to consider shares today.

Key Data:

  • 1 Year Price Growth: N/A
  • YTD Price Growth: -30.90%
  • 3 Month Price Growth: -36.94%

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