Why Tilray Brands Soared 40% This Week

Key Points

• Tilray rallied after President Trump posted a pro-CBD video on Truth Social last weekend.

• Tilray is also expanding its medical cannabis sales in Germany.

• However, investors would do well to not get their hopes up.

• 10 stocks we like better than Tilray Brands ›

Shares of cannabis company Tilray Brands (NASDAQ: TLRY) rallied some 40% this week through Thursday trading, according to data from S&P Global Market Intelligence.

Last weekend, President Donald Trump posted a pro-cannabidiol (CBD) video -- albeit produced by a third party -- on his Truth Social account. CBD is a chemical derived from cannabis that has reported medical benefits, but does not cause the "high" of other cannabis compounds.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Tilray also announced an expansion of medical marijuana cannabis flower in Germany this week; still, it appears the Trump post was the main catalyst for the big move higher.

Image source: Getty Images.

Trump appears to get behind CBD for senior health

In the video produced by The Commonwealth Project that President Trump posted, the narrator touts the benefits of CBD in boosting the body's endocannabinoid system, which the video claims can help reduce aging-related maladies and displace expensive pharmaceuticals.

While cannabis remains illegal in the United States at the Federal level, the 2018 Farm Bill legalized CBD. That said, the Food and Drug Administration excludes CBD from food supplements, and mainstream physicians generally don't prescribe the cannabis-derived chemical -- nor does Medicare cover over-the-counter CBD.

However, it appears Trump's post means the administration is getting behind CBD as a natural and cheaper alternative to expensive pharmaceuticals, which cost patients and taxpayers billions every year.

The post boosted just about all cannabis stocks to start the week. This is because many cannabis stocks, Tilray included, sell CBD products alongside their cannabis products. Tilray is actually now diversified across recreational cannabis in Canada, medical cannabis in Europe, CBD drinks in all markets including the U.S., and more recently, alcohol.

In addition to the Trump post, Tilray also issued a press release on Tuesday announcing the expansion of its medical cannabis portfolio in Germany, which has legalized cannabis not only for medical but also recreational use.

Tilray remains risky but could pop higher if cannabis is de-scheduled

Cannabis stocks have moved higher at various points over the past five years on hints of potential legalization or de-scheduling, only to fall again once those hopes were dashed. As such, I would be highly skeptical of this rally.

After all, most cannabis companies struggle to make profits, and Tilray is no exception. The company took a massive impairment charge last quarter, sending losses deeply into the red. But even absent the $1.4 billion impairment, Tilray would still have lost money on a GAAP basis.

President Trump did say he was "looking at reclassifying marijuana" back in August, perhaps leading to hope that a de-scheduling could lead to tax relief for U.S. cannabis companies. But until that happens, investors should stay away from these speculative names. Even if cannabis is de-scheduled with the associated tax relief, it's unclear if high competition will eat away at the industry's profits.

Should you invest $1,000 in Tilray Brands right now?

Before you buy stock in Tilray Brands, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tilray Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $626,942!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,157,870!*

Now, it’s worth noting Stock Advisor’s total average return is 1,063% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.