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Tilray stock sinks after Q3 revenue miss

Shares of cannabis company Tilray Brands (TLRY) are sliding in Tuesday's pre-market trading and into the session open after reporting a fiscal third-quarter revenue miss. The cannabis-pharmaceutical stock, which is still regarded as a meme stock, has seen year-to-date gains of over 12%.

Morning Brief Anchors Seana Smith and Jared Blikre monitor Tilray's stock, comparing it to the overall performance of the cannabis industry in 2024.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

Editor's note: This article was written by Luke Carberry Mogan.

Video transcript

SEANA SMITH: Tilray shares are moving to the downside after reporting a wider than expected loss in the third quarter. Revenue also fell short of the Street's expectations. Shares though, despite today's drop, are still up since the start of the year.

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And this is another stock we were just talking about, DJT. This is another stock that moves pretty wildly. We have seen wild price action, pretty volatile pricing action here over the last several months, really the last several years here.

But when you take into account some of these numbers that we're getting out from Tilray this morning, obviously, a disappointment. A lot of that because of the guidance that's putting pressure on shares here in pre-market trading.

But beyond that, though, I wanted to bring up what we're seeing in beverage, alcohol because this is something that Tilray has talked about. We have the CEO on later--

JARED BLIKRE: I'd charge for all of this in the show.

SEANA SMITH: --later in the show, later on in Yahoo Finance's and the programming. And that's actually where they are seeing some strength. $54.7 million was total revenue in the most recent quarter that. That was up from $20.6 million on a year-over-year basis. Also slightly better than what the Street was looking for. So a bit of a silver lining within this report, Jared.

JARED BLIKRE: Yeah, beverages, that staples, not really that exciting usually. But let's go to the Wi-Fi interactive. I have a year-to-date heat map for beverages. You don't see a lot of action except in one name. That's Celsius Holdings right there.

When I look over to weed, now look at the difference here. Those are some impressive numbers. You see Tilray, that's kind of towards the bottom. That's only up 12%. But you have names up-- like TRUL up 145%, CGC basically doubling its price.

But now if I go to a five-year, you see a much different story here. I'm going to by performance. Just about two thirds of these are down 85% or more. So this is an industry that has just been decimated.

I believe their peak was about 2018, 2019 so that was before the pandemic. That was a huge source of hot money flows. I remember crypto was, kind of, peaking in late 2017, but it just has not managed to recover.

And so when you take a look at the three-year return of minus 80% and then you go to the company's fundamentals, they just said they no longer expect to generate positive-adjusted, free cash flow for the year. They're struggling a bit and their excuses, there's delayed timing for collecting cash on various asset sales. But if you've got to-- if you've got to sell assets if you're engaged in asset sales, well, that indicates a problem in the first place.

SEANA SMITH: Certainly that's why we're seeing some of that pressure on shares here in pre-market trading. All right, well, stay tuned here on Yahoo Finance, Market Domination Overtime where Julie Hyman will be speaking with Tilray CEO Irwin Simon. That's at 4:00 PM Eastern time today, you won't want to miss that.