This Stock Has Almost Tripled in 6 Months. Here's What Investors Need to Watch Next

Industry Overview - The cannabis sector has experienced a turnaround in the second half of 2025, with industry leaders like Tilray Brands seeing nearly a 200% increase in share prices over the past six months, indicating potential for continued momentum into 2026 [1] - The cannabis industry has faced dismal performance in recent years, but recent regulatory developments in the U.S. have sparked renewed investor interest [2] Regulatory Changes - President Donald Trump signed an executive order to reclassify marijuana, moving it from Schedule 1 to Schedule 3, which has significant implications for the cannabis industry [3][4] - Schedule 1 drugs are considered the most dangerous with no accepted medical use, while Schedule 3 drugs have lower potential for abuse and some accepted medical uses [3] Implications of Reclassification - The reclassification will facilitate research into potential medical uses for cannabis, improve access to banking services for pot growers, and alter tax implications for cannabis companies [4][5] - Companies in the cannabis sector will be able to deduct normal business expenses from their income, potentially leading to higher operating profits and margins [5] Impact on Tilray - Despite the positive regulatory changes, Tilray's current business model does not generate revenue from marijuana sales in the U.S., as it primarily offers hemp-based products, which are not classified as controlled substances [8] - The recent surge in Tilray's shares is driven by expectations surrounding cannabis reclassification, which has now materialized, but significant challenges remain for the company moving forward [7]