Is Tilray's Stock a Smart Buy After Its Q4 Earnings?
Though the coronavirus pandemic has meant a marijuana boom in many areas, Canadian cannabis stocks are having a hard time generating profits. Most of them haven't even achieved positive earnings before interest, tax, depreciation, and amortization, or EBITDA. A smaller market than that of the U.S., regulatory holdups, fewer legal stores than expected, and pandemic restrictions have all served as headwinds.
While most of the popular Canadian players have been disappointing investors, Tilray (NASDAQ: TLRY) managed to impress with its fourth-quarter (ended May 31) results. This is the first quarter of reported earnings since the company's merger with Aphria was completed in May -- and it's also the first quarter in which the company has reported a profit. It is safe to say the merger proved beneficial to Tilray. But the quarterly results don't reflect all the reasons to consider buying Tilray. What else is there?
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Source Fool.com
