Tilray Shares Plunge as US Legislation Targets Hemp Products

Tilray shares experienced significant selling pressure on Friday, closing down 4.42% at $1.08 after U.S. lawmakers approved spending legislation containing stricter regulations for hemp-derived products. Trading volume surged 18% to nearly 59 million shares, indicating widespread investor concern.

The sharp decline followed the inclusion of last-minute provisions in federal spending bills that effectively re-criminalize intoxicating hemp products such as Delta-8 THC. These substances had previously entered the U.S. market through legal channels established by the 2018 Farm Bill, creating what Canadian cannabis producers like Tilray viewed as a strategic pathway into the valuable American market.

During Friday's session, the stock briefly touched $1.06 before recovering slightly. The timing proved particularly disappointing for the company, which had publicly criticized what it called "misguided prohibition measures" on November 11, asserting it anticipated "no material revenue impact" from such regulatory changes.

Technical Indicators Signal Continued Weakness

Market technicians observed concerning patterns in Tilray's recent performance, with declines occurring in seven of the previous ten trading sessions. Friday's closing price of $1.08 places the stock between its 50-day moving average of $1.39 and its 200-day moving average of $0.90, suggesting ongoing volatility. Financial analysts project the company will report a loss of $0.02 per share for the current quarter.

Should investors sell immediately? Or is it worth buying Tilray?

International Expansion Provides Alternative Growth

As regulatory challenges emerge in the United States, Tilray continues pursuing global diversification initiatives. Early November brought announcements of multiple international developments:

• Regulatory approval in Panama through a joint venture arrangement
• Introduction of new product lines in the German market
• Formation of a strategic partnership in Italy

This geographical expansion strategy may help mitigate regulatory setbacks in individual markets, though the U.S. cannabis sector remains the primary target for industry leaders.