Trump Just Gave Cannabis a Push. Here Is Where Tilray Stock Could Be Headed Next

Core Viewpoint - Tilray (TLRY) shares experienced a significant increase of nearly 60% following President Trump's endorsement of cannabidiol (CBD) as a transformative element in senior healthcare, suggesting potential for substantial medical cost savings of up to $64 billion annually [1][4]. Group 1: Stock Performance - Following the rally, Tilray stock reached a new 52-week high of $1.86 [2]. - Options data indicates heightened volatility for Tilray shares, with traders anticipating a 23.43% price movement by the end of the week, suggesting a trading range of $1.42 to $2.28 [5]. - Longer-dated options expiring on December 19 suggest an even wider range of $0.93 to $2.77, reflecting both optimism and risk [6]. Group 2: Regulatory Impact - The potential rescheduling of marijuana from Schedule I to Schedule III could significantly alter the cannabis industry, allowing access to traditional banking services and more favorable tax treatment [3]. - Trump's support for Medicare coverage of marijuana-related treatments indicates a shift towards federal backing for the CBD industry, which could alleviate criminal penalties and financial restrictions [4]. Group 3: Market Sentiment - The market sentiment appears to be leaning towards the upside, driven by Trump's remarks and speculation regarding federal marijuana rescheduling [5][6]. - Wall Street analysts recommend maintaining a long-term position in Tilray shares, indicating confidence in the company's future prospects [7].