Tilray Inc TLRY shares are trading sharply higher potentially on a rebound following weakness in the sector. A DataTrek report suggested the negative impact from the coronavirus could accelerate legalization as states look for ways to recoup losses.
The Canadian cannabis cultivator’s stock has been under pressure as of late as the market adjusts to the impact of the coronavirus. Although there is no main reason for the stock to trade so much higher today, it could potentially be trading on a rebound as equities across many sectors traded higher after the U.S. stimulus package passed through the U.S. Senate.
DataTrek suggested the negative impact from the coronavirus could push legalization across America. Social distancing, closing businesses and imposing travel restrictions have cost states millions of unrecoverable dollars, but legalizing marijuana could make up some losses.
“The stock is just bouncing from very weak levels caused by a capital raise. It is still down from the month-end close at 2/28 of 14.43 and underperforming the sector by far in March,” New Cannabis Ventures Founder Alan Brochstein told Benzinga in an email.
Tilray shares were trading up 60% at $8.07 on Thursday. The stock has a 52-week high of $66.40 and a 52-week low of $2.43.
Versión en Español en El Planteo: Acciones de Tilray (TLRY) y Aurora Cannabis (ACB) Continuan Al Alza: ¿Por Qué?
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