Why Tilray Stock Plummeted by 26% in April

Core Insights - The marijuana sector continues to face significant challenges, leading to a lack of investor interest, particularly as cannabis remains illegal at the federal level in the U.S. [1] - Tilray Brands has experienced a substantial decline in its stock value, losing over 26% in April and trading under $1, indicating a prolonged downward trend [1][4] - The company reported a 1$186 million, and posted a non-GAAP loss of $2.9 million compared to a profit of$885,000 in the same period the previous year [2][4] Financial Performance - Tilray's management has reduced its revenue guidance for 2025, now expecting $850 million to$900 million, down from a previous estimate of $950 million to$1 billion [4] - The company is considering a reverse stock split with a proposed ratio of 1-to-10 to 1-to-20 to boost its stock price, which will be voted on in a special shareholders' meeting on June 10 [5] Diversification Efforts - In an attempt to diversify, Tilray has been acquiring craft breweries, as beer has broader market appeal and is not subject to the same regulatory challenges as cannabis [7] - However, the beer market has also faced challenges, with consumption hitting a four-decade low in 2024, raising doubts about whether this strategy will improve Tilray's fortunes [8] Market Outlook - There are currently no clear catalysts for Tilray's recovery, with the only potential being the decriminalization of cannabis in the U.S., which appears unlikely in the near term [9]