Tilray Rally Fades as Doubts About Pot Stocks Prevail

  • Sustained rebound seen unlikely without U.S. legalization
  • Canada’s marijuana market leader down 90% from Feb. 2021 peak

Cannabis plants inside a grow room Leamington, Ontario, Canada.

Photographer: Annie Sakkab/Bloomberg
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Canadian cannabis titan Tilray Inc. fell for a third straight day, surrendering much of a rally posted earlier this week after earnings that were buoyed by acquisitions and a rebranding -- moves aimed at strengthening its global reach in the face of stiff competition at home.

Canada’s marijuana-market leader still rose about 7% this week, thanks to a 14% surge on Monday, when it reported better-than-expected results and said it was repositioning itself as a global consumer packaged-goods “powerhouse.” Demand for its cannabis brands, craft beer and hemp products boosted profits, the company said.