Shares of Tilray (NASDAQ: TLRY) rose 11% on Monday after U.S. Vice President Kamala Harris seemed to favor fully legalizing marijuana — a development that would be obviously positive for the cannabis-lifestyle and beverages company.
Kamala Harris favors legalizing cannabis
At the White House on Friday, 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 public opening remarks beforehand, Harris also called on the U.S. Drug Enforcement Administration (DEA) to reschedule marijuana “as quickly as possible,” arguing that it’s “absurd” marijuana is currently considered as dangerous as heroin under its current status as a Schedule I drug per 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 on Friday marked the first time since joining the ticket as Joe Biden’s running mate in 2020 that the Vice President has signaled support for legalizing marijuana on a federal level. This is a potentially significant shift for the administration ahead of this year’s presidential election.
What’s next for Tilray investors?
Tilray generates around 35% of its revenue from cannabis products — though that total is declining as the company has made significant acquisitions in the alcohol beverage space in recent quarters. Tilray also continues to expand internationally, including announcing approval just last week for its first medical cannabis extract product in Portugal.
But considering the United States easily represents the world’s largest cannabis market — with U.S. cannabis sales expected to represent around two-thirds of global cannabis revenue in 2024 — it’s no surprise to see Tilray rallying in response to the seemingly increased prospect for the drug becoming legal in the U.S. on a federal level in the near future.
Should you invest $1,000 in Tilray Brands right now?
Before you buy stock in Tilray Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tilray Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 18, 2024
Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.
Why Tilray Stock Popped Today was originally published by The Motley Fool
