Tilray Stock Surges on Positive News

Tilray Stock Surges on Positive News

Actions of Tilray (NASDAQ:TLRY) rose 11% on Monday after US Vice President Kamala Harris appeared to favor full legalization of marijuana – a development that would obviously be positive for the cannabis drinks and products company.

Kamala Harris in favor of legalizing cannabis

On Friday at the White House, Harris reportedly told a room full of cannabis pardon recipients that “we need to legalize marijuana,” according to people familiar with the closed-door meeting. In her public opening remarks, Harris also called on the U.S. Drug Enforcement Administration (DEA) to reclassify marijuana “as quickly as possible,” arguing that it is “absurd.” Marijuana is currently considered as dangerous as heroin in its current status as a Schedule I drug under the Controlled Substances Act of 1970.

Marijuana is currently legal at the state level in 38 states for medical use and 24 states for recreational use. Harris’ comments Friday marked the first time since joining as Joe Biden’s running mate in 2020 that the vice president showed support for federally legalizing marijuana. This is a potentially significant change for the administration as this year’s presidential election approaches.

What’s next for Tilray investors?

Tilray generates around 35% of its turnover from cannabis products – although that total is down as the company has made significant acquisitions in the alcoholic beverage sector in recent quarters. Tilray also continues to expand internationally, including announcing the approval last week of its first medical cannabis extract product in Portugal.

But given that the United States easily represents the largest cannabis market in the world β€” with U.S. cannabis sales expected to account for about two-thirds of global cannabis revenue in 2024 β€” it’s no surprise that see Tilray rally in response to the drug’s seemingly growing prospects. will become legal in the United States at the federal level in the near future.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Mad Motley has a disclosure policy.

Why Tilray Stock Broke Today was originally published by The Motley Fool

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