Investors are always looking to find new stocks in different sectors to diversify their portfolios. They want to know about the stocks that can help them earn money in the short run. Therefore, investors analyze the current market conditions to assess which stocks or sectors are currently doing well and are likely to increase in a short span.
The whole world is currently dealing with a pandemic, and it has caused the share prices of companies in the healthcare and medical industry to rise. In addition, the legalization of cannabis for medical purposes is also causing the demand for various companies’ stocks to rise.
One such company that is worth your attention is Tilray Brands Inc. It is a well-known brand that provides customers with cannabis-lifestyle and consumer-packaged products. The company is rapidly expanding its operations throughout different regions in the world, including Europe, Australia, and Latin America.
Tilray has been able to make a name for itself in a highly competitive market. The company’s impressive R&D (Research and Development) department has helped them develop various new cannabis-lifestyle products. Founded in 2013, Tilray became the first cannabis company to go public in 2018.
Cannabis stocks present a great opportunity for investors to diversify their portfolios and earn amazing returns. Let’s go over the future price prediction and historical analysis of the Tilray Inc. stock to understand if it is worth investing in or not.
Tilray Statistical Overview
Tilray Stock Forecast 2022
So far, Tilray share price has seen a couple of ups and downs in the first four months of 2022. The company’s share price opened at $7.1 on the first day of trading this year. It fell to $5 in the third week of March before rising to $8.5 by the end of the same month. However, its stock price witnessed a decrease and reached $5 by the second week of May.
Weak financial results for the third quarter are the main reason shareholders were skeptical about the company’s future. Furthermore, the company’s CEO, Simon announcements also surprised investors. Simon expressed concern that the United States won’t legalize cannabis by the end of 2024.
He further added that it could be a challenge for the company to hit its target if that is the case. Therefore, many investors feel that the company might not be able to reach its goals set for this year. Most notably, Tilray’s objectives regarding entering the US market are a concern for many investors.
Though the company is acquiring and merging with other businesses to enter the US market, investors fail to see a proper roadmap. Nevertheless, as the legalization of cannabis in the US is taking place, we can see cannabis stocks like Tilray see a massive change.
Tilray Stock 2021
While Tilray’s share price did see a spike at the start of the year, it plummeted throughout the rest of 2021. The company’s share price opened at $9 on the 4th of January 2021 and reached a value of $62 by the second week of February. Ever since then, the company’s share price has continued to go down in the months to come.
Tilray’s share price closed at around $7 on the last day of trading in 2021. The reason behind the sharp rise in the Tilray stock price was its merger with Aphria. It is a big player in the Canadian industry, and Tilray finalized the deal with them at the start of 2021.
Therefore, investors saw an opportunity that Tilray could expand its operations and increase its foothold in other markets. However, the company couldn’t post the numbers that many analysts and experts had projected. While the revenue in Q1 2021 increased, the net loss margin widened.
Yet, many analysts weren’t sure about the drop in Tilray’s share prices despite the company making many deals for merging and acquiring other businesses. They believed that the share price did not reflect the company’s actual value.
Investors were also not sure about the management’s plan regarding expansion in the European markets. All these things piled up and mounted on to increase the selling pressure on Tilray shareholders. As a result, the share prices dropped significantly in 2021.
Tilray Stock 2020
Tilray also felt the effects of the market crash in 2020 due to the covid-19 pandemic. Its share prices were in free fall as the stock lost 75% of its value in 2019. While the share price opened at $17 on the first day of trading in 2020, it saw a brief rise to $20 in February. However, the share prices crashed down to $2.4 in the second week of March.
Like other companies, the pandemic had a negative impact on Tilray share price, and it lost significant value over the first few months of 2020. However, Tilray stock recovered from the fall, and its stock price closed at $10 by the last week of December.
Though the company’s share price did fall by a significant margin in 2020, the recovery was much better than other players in the cannabis market. The merger between Aphria and Tilray was the major reason that the stock price saw a huge increase of 27% in the post-pandemic recovery.
Aphria (APHA) and Tilray are two cannabis giants with a massive share in the Canadian and American markets. Their merger gave shareholders and investors confidence that the company may have a great future ahead. Both agreed to adopt the name Tilray for the new business to increase their control over the markets in Canada and US.
After the deal, many experts changed their ratings for Tilray stock, making it a buy-and-hold share. Furthermore, the House also passed the bill to decriminalize cannabis in December 2020. Moreover, rumors about cannabis preventing the Covid-19 disease were also the reason the Tilray stock saw a rise in its share value.
Tilray Stock 2019-18
Tilray launched its IPO in 2018 at a price of around $23. The stock price reached an all-time high value in November 2018, going as high as $300 during intra-day trading and closing at $214. However, the stock prices plummeted the next week and went down to $99.
The bearish trend continued throughout 2019 as Tilray stock prices fell to $17 on the last day of trading that year. This value was way below its IPO offering as investors lost confidence due to its weak financials. Tilray shares lost 75% of their value in 2019 and around 300% from its IPO to the end of the year.
The entire cannabis market was in free fall in 2019, and the stock prices of the majority of the company plummeted that year. Tilray was also one of the companies that got caught up in the fire, and its share value fell significantly over the last four quarters.
Cannabis companies faced challenges of increasing regulatory pressures in North America, criticism over illness and deaths because of electronic cigarettes, and tough competition in the market. As a result, short bets have done wonders for investors who earned $993 million from the entire cannabis sector.
Despite closing a merger deal with Privateer Holdings, Tilray stock price continued to fall throughout 2018-19. Bears were all over the share, and the company’s stock value continued to fall till the covid-19 pandemic hit.
How to Invest in Tilray Stocks?
The cannabis industry offers amazing opportunities to investors since it can help them reap profits in the short and long run. The latest technologies make it easy for companies like Tilray to simplify their manufacturing procedures, improve their delivery system, and create new drugs/products to help people.
However, before you dive into the world of investing in stocks, it is best to have a proper strategy for the long and short term. You need to know about the timeframe and the return percentage you are looking to get on your investment.
Moreover, due diligence is an integral part of investing in stocks. Having complete knowledge about the cannabis company you want to invest in will help you make sound decisions. Doing comparative analysis and understanding market trends can save you from losses.
Tilray Inc. is looking forward to entering the US market. It is working on acquiring and merging with top players, such as Aphria, which is a major development. These merger deals will help it increase its foothold in the North American market and expand to other regions, like Europe, Australia, etc.
Furthermore, the company is also working on creating new products that can help its consumer base. Tilray is researching the use of cannabis in the best possible way and coming up with new treatments. Its R&D department is continuously working on new medications, and we can expect to see one from them soon.
Also, the legalization of cannabis by the US House of Representatives creates new opportunities for Tilray to expand its horizons. Investors looking to diversify their portfolio by having cannabis stock should keep an eye on Tilray stock.
Where to Buy Tilray Cannabis Stock?
Any investor looking to buy cannabis stock needs to have an online broker that allows them to buy and sell shares. Many beginner investors don’t want a complicated platform that is difficult to understand. Even experienced investors prefer to choose an online broker that makes investing easy and quick.
Therefore, choosing a reliable and trusted online platform like eToro is imperative. You can find various tools that make the overall experience simple. In addition, you won’t have to worry about different charges or hidden commissions that other online brokers take on each transaction.
It offers complete transparency and helps you make strategic investments in cannabis stocks. Not only that, but the platform will also guide you through the different stages. Beginner investors can access the learning material to learn how to analyze and buy stocks at the right time.
The best part about eToro is that you don’t have to go through a difficult registration process. Here is a step-by-step guide so you can have a better idea about it.
Step 1: Open an Account
First, you need to go to the eToro platform and fillout the online application form. It is not a lengthy form and only requires a few basic details from you. Investors can fill it within minutes and then move on to the next step.
Step 2: Upload ID
The eToro platform requires you to submit a few documents, such as a valid passport, bank account statements, etc., for verification. Providing valid documents is necessary to comply with the KYC and AML regulations.
Step 3: Make a Deposit
Now that your account is ready, you can start investing in your preferred cannabis stocks. You can decide the amount you want to invest in these stocks and deposit it to purchase shares through the eToro platform.
Investors can deposit the money using their debit or credit cards. They can also make payments through the bank wire transfer or PayPal account.
Step 4: Search for Tilray
After having the funds in your account, you can use them to invest in Tilray or any other stock. The search bar option in the platform enables you to look up different shares in various sectors.
You can also view the previous stock trends and access the company’s ratio analysis to decide when to buy or sell it. The trade option in the platform enables you to buy and sell the stock you want.
Investors can benefit from the stop-loss option that helps them set certain limits for profit and loss. The platform will automatically sell the shares if they go above or below the limit you have set.
Step 5: Buy Tilray Stocks
Though Tilray’s share price is currently going down, the company is working on getting into the US market.
It is making deals with other businesses to increase its foothold and continuously working on improving its products. Therefore, investors need to keep a close eye on the Tilray stock value.
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