TLDR
- TLRY stock jumped 11.45% after Trump endorsed CBD for senior healthcare
- President posted on Truth Social that CBD could “revolutionize senior healthcare”
- Cannabis sector rallied with some stocks gaining nearly 20% in premarket
- Trump previously hinted at marijuana reclassification from Schedule I status
- Move could eliminate tax burdens and help cannabis companies access major exchanges
Tilray stock rocketed 11.45% Monday following President Trump’s endorsement of CBD for senior healthcare. The cannabis company’s shares surged after Trump posted on Truth Social that hemp-derived cannabidiol could transform medical care for older Americans.
Trump’s Sunday evening post suggested CBD could “revolutionize senior healthcare” by reducing disease progression. He positioned cannabidiol as a viable alternative to traditional prescription medications.
The presidential backing triggered widespread buying across cannabis stocks. Canopy Growth and Tilray both spiked nearly 20% in premarket trading. The AdvisorShares Pure U.S. Cannabis ETF exploded 25.2% higher, tracking toward its largest quarterly gain ever at roughly 70%.
Regulatory Changes Could Reshape Industry
Trump’s administration has signaled potential marijuana policy shifts. Last month, the president indicated plans to reclassify marijuana from its current Schedule I designation under federal law.
Current regulations classify marijuana as having high abuse potential with no accepted medical use. The Biden administration had directed health agencies to review this status, with recommendations to move cannabis to Schedule III classification.
Reclassification would eliminate Section 280E tax penalties that deny standard business deductions to cannabis companies. This change could enable companies to list on major U.S. stock exchanges and attract institutional investment.
The policy shift would also bridge gaps between state and federal cannabis laws. Nearly 40 states have legalized marijuana in some form despite federal prohibition.
“Trump already hinted that they were planning to reclassify it,” said Daniela Hathorn from Capital.com. “This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies.”
TLRY Performance Shows Sector Volatility
Monday’s rally reversed recent TLRY declines. The stock had dropped 4.70% over the previous week and fell 20.58% during the past month before today’s surge.
Tilray’s longer-term performance demonstrates typical cannabis sector volatility. The stock gained over 193% in the past three months despite recent weakness.
The company’s fundamentals remain challenging. Tilray reported $821.3 million in net revenue for fiscal 2025, up 4% primarily from beer acquisitions. However, the company posted a $2.3 billion operating loss, including $2.1 billion in impairment charges.
Cannabis stocks have historically reflected political sentiment around legalization efforts. Individual company performance varies widely, with some stocks losing half their value this year while others gained over 30%.
Institutional investors recently reduced TLRY positions, including Goldman Sachs. The company’s next earnings report scheduled for October 9 will provide updated financial metrics.
Market analysts suggest additional upside potential if reclassification proceeds. However, fundamental business challenges persist regardless of regulatory changes.
The cannabis sector remains highly sensitive to political developments, with today’s rally demonstrating how quickly sentiment can shift based on administrative signals.
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