Why Tilray Stock Just Stubbed Out

Core Viewpoint - Tilray's stock experienced a significant decline of 19.4% following the announcement of a 1-for-10 reverse stock split, which will reduce the total share count from approximately 1.16 billion to 116 million shares [1][3]. Summary by Sections Reverse Stock Split Details - Tilray has chosen the less drastic option of a 1-for-10 reverse stock split, meaning investors will own 10% fewer shares than before [3]. - The reverse split will take effect after trading on December 1, with shares resuming trading at an estimated price of $8.10 on December 2, based on the current price of $0.81 [4][8]. Implications of the Reverse Split - A reverse stock split does not fundamentally change the company's business but increases the price per share, which can help avoid delisting risks [5]. - The reverse split indicates that Tilray has not been able to increase its share price through business growth, suggesting potential reasons for investors to consider selling [6]. Investment Considerations - Analysts have identified ten stocks they believe are better investment opportunities than Tilray, indicating a lack of confidence in Tilray's current market position [9].