Tilray, Inc. (NASDAQ:TLRY) has been falling hard lately and the stock has lost more than 60% of its value since the start of the year. Cannabis stocks as a whole have been struggling and with Tilray now near its 52-week low, it could be an opportune time to buy the stock.
With revenues totaling $45.9 million in its most recent quarterly results, Tilray has been showing significant growth from the $9.7 million that it generated just a year ago.
The Canadian cannabis market, now legal, could see Tilray benefit from even more growth potential with the edibles segment of the market set to launch later this year. And with the company partnering with beverage giant Anheuser-Busch InBev (NYSE:BUD), there could be significant opportunities for Tilray to benefit from the popularity around cannabis-infused beverages.
While beverages haven’t exactly been a big hit in the U.S. where edibles have already been legal in some states, this is also the first time we’ll see the key beverage makers get involved in the industry, which could get consumers interested in trying the new products.
There are many ways that Tilray can continue growing and this latest setback appears to be industry-related rather than indicative of anything the company has done. That means there’s also a good chance for the stock recovering.
Although Tilray did post a loss of $35 million in its most recent quarter, investors have to remember the stock is still in the midst of a very high-growth stage where it’s going to take a while before the company can get close to breakeven. Buying today could yield some strong returns down the road.
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