3 Reasons Why Tilray Can Bounce Back
Tilray's (NASDAQ: TLRY) stock has been in a free fall this year, seeing its valuation cut in half. Although investors haven't been very positive on pot stocks this year in general, Tilray has certainly been one of the more notable underperformers of 2019. While the sell-off may be concerning for investors, it may not be time to give up on the stock quite yet. Below are three reasons why Tilray could be a good bet to bounce back and why it could rally very soon.
In Tilray's most recent quarterly results, sales of $45.9 million were up 371% year over year. What's perhaps most encouraging about the results is the diversification in the company's revenue. While the adult-use market in Canada definitely gave the company a big boost, adding more than $15 million in sales this quarter, it was the food products segment that contributed the most at just under $20 million in sales. Internationally, the company also saw revenues triple to $1.85 million.
What's exciting about this is that Tilray has so many different avenues in which to grow its sales. The company's purchase earlier this year of Manitoba Harvest, maker of the popular Hemp Hearts products, positions Tilray for success in the U.S. hemp market, which could be worth an estimated $13 billion by 2026. Meanwhile, the adult-use market continues to grow in Canada, and Tilray is making moves to expand in that area as well, with the most recent being the acquisition of cannabis retailer Four20.
Source Fool.com
