Down 90% in the Past Year, Is Tilray Stock a Buy?

Shares of Canada-based cannabis company Tilray (NASDAQ: TLRY) have moved 90% lower over the past year. Tilray went public at $17 per share in July 2018 and touched a record high of $300 in intra-day trading a couple of months later. The stock is currently trading at a record low of $3.40, which means it has lost a staggering 98% in market value in approximately 18 months.

Most pot stocks in Canada are trading close to 52-week lows because of several issues. They have been affected by lower-than-expected demand, mounting losses, regulatory issues, health worries about vaping, the slow rollout of retail stores in major Canadian provinces, cannibalization from the illegal market, high inventory levels, and more.

In 2020, Tilray shares are down 80%, driven by the broader market sell-off and its less-than-impressive fourth-quarter performance. In the fourth quarter, the company reported sales of $46.9 million, a decline of 8% sequentially. Its net loss fell from $31 million in Q4 of 2018 and $36 million in the third quarter of 2019 to a mind-boggling $219 million in the December quarter of 2019.

Source Fool.com