Tilray stock is one of the most volatile stocks over the past few months and underperformed the broader cannabis sector as Tilray (NASDAQ:TLRY) failed to impress stock investors.
Over the past months, plenty of marijuana stocks have recorded immense gains, but at the same time, there have been some stocks that have reached dizzying highs and then retreated to abysmal lows. In that regard, Tilray is firmly within the second camp, and recently, its stock seems to be in a downward spiral that it is finding difficult to shake.
Wild Stock Movements
When TLRY stock had its initial public offering back in August last year, it was priced at $17, and over the next few months, the price climbed steadily. By September, Tilray stock reached $50, and within a few weeks, the stock skyrocketed to $300. However, it soon started the retreat in October, when the stock fell to $100, and since then it has been a downward slide. Currently, TLRY stock is priced below $37.
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Experts believe that the company’s track record in terms of execution has been poor, but it should not have fallen to these levels. At the same time, experts agree that TLRY's climb to $300 was not justified either. Despite the lackluster performance, those who are bullish on Tilray stock are optimistic again after the company released its results for Q1 2019.
The revenues for the first quarter stood at $23 million, which was significantly higher than analysts’ estimates of $20 million. Although the losses did mount and failed to beat analysts’ estimates, it needs to be remembered that currently the company is focussed on getting big quickly.
Sales Growth and Market Share
The bigger worry for the company lies in the fact that its sales have not been growing and it is losing market share to other players in the Canadian market. Its medical marijuana sales growth was flat, and its market share has dwindled as well. Tilray, which was once a big player in the market, has now fallen out of the top 5 companies in terms of market share.
TLRY stock is down 50% so far in 2019. Moreover, the stock is down about 85% from its all-time high of $300.
Do you think Tilray stock will continue to fall? Or is a rebound in store for TLRY?
Featured image: Canva
