3 Burning Questions Keeping Tilray Investors Up at Night
Speaking from (former) experience, it can be a bit harrowing to be an investor in Tilray Brands (NASDAQ: TLRY). Between the Canadian cannabis conglomerate's penchant for acquisitions and major diversification initiatives and its ongoing struggle to remain profitable, the stock's decline of more than 91.8% in the last three years is likely to be looming large in the market's perceptions of its future performance.
Its shareholders are likely to be particularly concerned about three high-impact topics in particular: alcohol sales, average selling prices, and inventory. Let's take a look at three of the (somewhat uncomfortable) questions investors have so that you'll know what to look for when the company reports its earnings on July 28.
Via its Sweetwater Brewing and Breckenridge Distillery subsidiaries, Tilray sells alcohol across the U.S. The segment was worth nearly $19.6 million, or 13% of the company's total revenue, in its fiscal Q3, which is the most recent quarter. What's more, sales of its alcoholic beverages grew by 64% year-over-year, massively outshining the 32% year-over-year increase in its cannabis revenue. But investors know that such rapid expansion is now facing a serious headwind that wasn't as evident earlier in the year: inflation.
Source Fool.com
