Why Tilray Stock fell Friday | The variegated fool

What happened

Shares of Tilray (NASDAQ: TLRY) extended their brutal two-day decline on Friday. At the close of trading, the price of cannabis shares fell 9.8% and a total of 56.7% from its highs on Wednesday.

So what

GLJ Research analyst Gordon Johnson asked investors to sell their shares in Tilray on Thursday – and sell what they did.

Johnson did not chop exactly words. He placed a $ 0 price forecast on Tilray’s shares. In essence, Johnson predicts that marijuana the producer will collapse before the end of 2022 due to its “gloomy” prospects.

A downward sloping stock chart.

Tilray’s stock has run more than half its value in recent days. Image source: Getty Images.

In addition, Johnson claimed that the Reddit-driven rally in weed stocks was likely to have ended. Because of their larger stock counts, he said traders would find it harder to drive their prices as high as they did with stocks like GameStop.

What now

While Johnson may be right in the short-term Reddit rally in bursting pot containers, his long-term forecasts for Tilray seem far too bleak. Tilray is moving forward with his impending merger with Africa – a combination that will create a powerhouse in the cannabis industry.

Investors will have a chance to check the progress of the merger when Tilray reports its fourth-quarter financial results following the market closing on 17 February. Shareholders may also want to cancel Tilray’s earnings conference on the same day at 17.00 EST.

Spread the love
[ Sharing is Caring! ]

More Tags We Love

california auto insurance rates car insurance for over 80 s auto insurance rates compared what is the best insurance company in canada unemployment insurance act united states which insurance is best for mobile how to report someone who has no car insurance how much does auto insurance cost per year us agency insurance claims phone number where is the cheapest auto insurance

This div height required for enabling the sticky sidebar