Why Tilray (TLRY) Shares Are Falling Today

What Happened?

Shares of cannabis company Tilray Brands (NASDAQ:TLRY) fell 5.2% in the afternoon session after the stock gave back some of its recent gains, which were fueled by reports that the U.S. administration was considering reclassifying marijuana. 

The drop followed a significant rally for the stock, which had climbed roughly 75% over the previous five trading days. The initial surge was triggered by news that the administration was actively considering changing marijuana's classification from a Schedule I to a Schedule III substance, viewing it as a less dangerous drug. This potential policy shift created significant volatility, with the stock jumping more than 27% in the prior day's session. The subsequent decline suggested that some investors were taking profits after the sharp run-up, as no final decision on the reclassification had been made.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tilray? Access our full analysis report here.

What Is The Market Telling Us

Tilray’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 40.8% on the news that reports suggested the Trump administration planned to ease federal restrictions on marijuana by reclassifying it as a less dangerous substance. 

This potential move would shift cannabis from a Schedule I drug, a category that includes substances like heroin, to a Schedule III drug, which is similar to some common prescription painkillers. Such a change, while not legalizing marijuana outright, would significantly reduce federal oversight. The reclassification was expected to expand research access and improve profitability for cannabis companies. For the industry, the change pointed to potential benefits like lower taxes and the lifting of banking rules that have long restricted financial activities. The news ignited a broad rally across the entire cannabis sector.

Tilray is down 10.3% since the beginning of the year, and at $13.10 per share, it is trading 37.6% below its 52-week high of $21 from October 2025.

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