Tilray, Inc. (NASDAQ:TLRY) stock tanked on Thursday, with shares down 12.7% as of 2:14 p.m. EST. The drop came only one day after the Canadian marijuana stock soared on positive news for the cannabis industry, related to U.S. election results and Jeff Sessions’ forced resignation as U.S. Attorney General.
Other major Canadian marijuana stocks also dropped on Thursday after posting nice gains on Wednesday. However, Tilray tends to see more dramatic price swings than its peers, in large part because of its low stock float of just over 10 million shares. Any major buying or selling pressure on the stock causes a greater impact than it would for stocks with larger floats…
The fall in Tilray’s share price pretty much offsets all of the gains the stock obtained following news of the departure of Jeff Sessions as U.S. Attorney General. Investors caught up in the U.S. cannabis industry’s euphoria seem to have realized that the news of Sessions’ ouster has little if any direct impact on Tilray.
Even after today’s decline, though, Tilray is still up more than 20% this week. U.S. voters handed Democrats a majority in the House of Representatives. This should increase the probability that the House passes legislation that could recognize states’ legalization of marijuana at the federal level. If federal laws are ultimately changed, it would open up the possibility for Tilray to compete in the large U.S. marijuana market…
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