Tilray 2.0: Why It’s Time to Take a Fresh Look at TLRY Stock

Stocks to buy

The downfall of Tilray (NASDAQ:TLRY) stock since 2018 has been epic and horrifying. Yet, Tilray’s loyal investors can expect to get some much-needed relief this year. As we’ll see, Tilray is boosting its product portfolio and taking action to maintain its market share throughout Canada.

Anyone who invested in cannabis companies, and in Tilray specifically, could definitely use some good news now. So, today I’ll serve up some positive developments pertaining to Tilray — and just maybe, compelling evidence that your investment won’t go up in smoke.

Tilray Takes Decisive Action for Growth

Tilray certainly hasn’t been a blockbuster success of a company during the past several years. However, Tilray’s management isn’t just sitting around and letting other cannabis businesses steal the company’s market share.

First of all, Tilray is tackling the THC-infused beverages market with new product offerings under the RIFF canned cannabis beverage brand. In fact, Tilray and RIFF recently debuted its Blue Raspberry Ice and Wild Raspberry Lemonade THC beverages.

This might just be the start of a much bigger product portfolio expansion, though. Not long ago, Tilray announced that the company is “actively seeking strategic acquisitions in the spirits and beverages industry.” Details on this plan are scant, but Tilray CEO Irwin Simon did clarify that he’s “focused on acquisitions within the beverage industry, which I think is a big business.”

Additionally, Tilray renewed its arrangement with cannabis sales broker Great North Distributors (GND). Under this renewed four-year agreement, GND will help Tilray commercialize its product portfolio throughout Canada (except for Quebec). It’s a highly value-added partnership, as Tilray describes GND as “Canada’s leading national sales broker for legalized adult-use cannabis.”

Not only that, but Tilray agreed to acquire eight beer/beverage brands from alcoholic beverage giant Anheuser-Busch (NYSE:BUD). With that, Tilray is expected to become the the fifth-largest craft beer business in the U.S.

TLRY Stock Perks Up on Quarterly Results

Turning to the financial side of the equation, Tilray is demonstrating improvement on multiple fronts. For evidence of this, we can turn to Tilray’s results for its fiscal fourth quarter of 2023.

Starting with the top-line data, Tilray’s net revenue increased 20% year over year to $184 million — not too shabby. Moreover, this revenue result exceeded the Wall Street analyst consensus estimate by around 20%.

Meanwhile, Tilray appears to be moving closer to profitability. In particular, the company reported a quarterly net earnings loss of around $120 million. This isn’t perfect, by any means, but it’s a lot better than Tilray’s net loss of roughly $458 million from the year-earlier quarter.

Along with all of that, Tilray disclosed its “[s]trong financial liquidity position” of around $450 million (including cash and marketable securities). Thus, Tilray appears to be in decent enough financial shape to pursue its growth strategies. And by the way, it’s also a good sign that TLRY stock rallied for several days after Tilray released its quarterly results.

Try TLRY Stock, But Don’t Binge It

Tilray still has a long path to profitability and other measures of success. Nevertheless, the company is clearly taking proactive steps to maintain and expand its Canadian cannabis market share.

Plus, Tilray’s quarterly financial results weren’t dazzling, but they were good enough to keep hope alive. Therefore, I recommend giving TLRY stock a try with a very small share position for a buy-and-hold investment.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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