Pot Loses Appeal in Covid Times, Pushing Marijuana Stocks Lower

By Christiana Sciaudone

Investing.com — Pot sales dropped despite a captive audience stuck at home, prompting Tilray (NASDAQ:) to tumble 12%. 

The company reported a loss per share of 65 cents compared to the expected 33-cent loss on sales of $50.4 million versus the forecasted $54.8 million.

Rivals Canopy Growth (NYSE:) and Aurora Cannabis (NYSE:) fell 1.7% and 1%, respectively. 

At Tilray, revenue rose 10% in the second quarter from a year earlier, and was down 3.2% from the first quarter, dragged down by its adult use, Canada medical and hemp sales divisions. International Medical sales jumped 43%, partially offsetting the weaker segments. 

Tilray blamed falling sales on Covid-19, the closure of stores in Ontario, changes in purchasing behavior and a limited number of retail locations added in the quarter. 

Tilray went public in 2018 at $17 a piece. Within two months, shares had soared to more than $143, and have been on a downward trajectory since, trading Tuesday at around $7 a share.

Shares have one buy rating, six holds and no sells, with an average price target of $8.70, according to analysts tracked by Investing.com.

 

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