We're looking at Tilray stock today. The Canadian cannabis producer has been an investor favorite in the market for some time.
Tilray Stock Shot up
Tilray (NASDAQ:TLRY) became the fastest growing marijuana stock in the market this year. It climbed over 320% between August and November and reached its all-time high of $214.06 on September 19th. In that same month, it was experiencing gains of 20%–40% day-on-day—such was its exponential growth.
With a market cap of $10.5 billion, the company is the second largest cannabis company in Canada, second only to Canopy Growth (TSX:WEED) (NYSE:CGC).
Tilray posted revenue of only $20 million last year, however, 2019 tells an entirely different story with sale projections of $140 million and up. The reason is the addition of adult-use sales and an unprecedented demand for cannabis product.
Tilray Stock Today
An industry-wide sell-off saw the company lose approx 50% of its massive gains in late October, and Tilray stock settled around the $100 mark since.
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Today, TRLY is up 5.26% and is selling for $109.47. The stock has been steadily climbing again since Tilray reported that its revenue surged more than 85% in the last quarter.
The report showed that medical marijuana sales brought in a total revenue of $10 million. This figure is a massive increase on previous year sales.
Tilray's CEO, Brendan Kennedy, made a point of detailing that it was medical marijuana that brought in that revenue figure, saying:
"All of that revenue for this quarter is medical and we look forward to next quarter when we'll start to see some Canadian adult-use revenue in that earnings report."
He hinted that next year's addition of adult-use sales to the report should increase revenue further:
"The biggest challenge is that there's just so much demand, which is interesting to see [...] It definitely takes six to 12 months for supply and demand to reach some sort of equilibrium."
With 2019 revenue projections in the high millions, stock predictions are also aiming high. Cowen's Vivien Azer predicts that the stock will outperform in the market and climb to $172 in 2019. If that is the case, Tilray stock would pack on an extra 52%.
