Core Insights - The cannabis sector is expected to experience significant changes in stock performance in 2026, driven by the rescheduling of cannabis to a Class 3 substance, which may lead to improved business operations and stronger equity valuations [1][2] - Investor sentiment is anticipated to shift towards a focus on business performance rather than speculation, attracting long-term institutional investors who previously avoided the sector due to high risks [2][3] Industry Overview - The cannabis sector's growth will increasingly favor companies that demonstrate effective execution and responsible capital management, positioning themselves as sustainable consumer and healthcare businesses rather than merely regulatory trades [3] - More states are preparing to vote on cannabis legalization and other regulatory matters, indicating a potential ramp-up in market activity for the 2026 trading year [3] Company Highlights - **Tilray Brands, Inc.**: Engages in the research, cultivation, processing, and distribution of medical cannabis products across multiple regions, with a second quarter fiscal Year 2026 report scheduled for January 8 [4] - **Cronos Group Inc.**: Recently entered the Netherlands cannabis market through the acquisition of CanAdelaar B.V., Europe's largest adult-use cannabis company, which is expected to enhance its strategic footprint in Europe [7][9] - **Aurora Cannabis Inc.**: Launched a new product, Daily Special, in Germany, aimed at providing high-quality and affordable medical cannabis, showcasing its commitment to the European market [11]

Company Overview - Tilray Brands, Inc. is a lifestyle consumer products company involved in the research, cultivation, processing, and distribution of medical cannabis products across various regions including Canada, the United States, Europe, the Middle East, and Africa [2] - At its peak, Tilray's share price reached nearly $150, symbolizing the cannabis boom and attracting significant market interest as a high-growth stock [2] Current Financial Status - As of December 18th, Tilray's share was trading at $12.88, with a trailing P/E ratio of 57.50 [1] - The company has experienced a dramatic decline of approximately 99%, with its current share price around $1.30 and a market capitalization of about $1.5 billion [3] Industry Challenges - Tilray's challenges reflect broader issues within the cannabis sector, including heavy dependence on state and federal regulations, rapidly changing consumer preferences, and competition in markets with limited competitive advantages [4] - The cannabis industry faces a mix of legal and illegal competition, which restricts individual companies' control over their growth trajectories [4] - Political decisions, fleeting popularity cycles, and reliance on pricing as a key differentiator contribute to a challenging operating environment, making it difficult to achieve sustainable long-term shareholder value [4] Investment Risks - While there is potential for profit in Tilray or other cannabis stocks, the inherent volatility, regulatory uncertainty, and structural weaknesses present exceptionally high risks [5] - Investors seeking consistent and durable returns are unlikely to find these qualities in Tilray, as the company's fundamentals have shown the fragility of growth driven by market hype [5] - Tilray serves as a cautionary example for investors focused on long-term capital preservation, highlighting the dangers of pursuing market trends in sectors with limited control over outcomes [5]

Core Viewpoint - Cannabis stocks experienced a rally following reports that President Trump is expected to sign an executive order rescheduling marijuana from Schedule I to Schedule III, which could lead to significant financial benefits for the cannabis sector [1]. Group 1: Tax Implications - Section 280E of the tax code currently prevents cannabis businesses from deducting standard business expenses, resulting in effective tax rates often exceeding 70% [2]. - Rescheduling cannabis to Schedule III would alleviate the burden of Section 280E, potentially allowing many cannabis businesses to achieve profitability for the first time [3]. Group 2: Market Reaction - Cannabis stocks were trading on above-average volumes and trending on social media as investors awaited an official statement from President Trump [5]. - Investors can track the sector through the AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) and individual stocks of major companies such as Tilray Brands, Inc. (NASDAQ:TLRY), Canopy Growth Corp. (NASDAQ:CGC), and others [5]. Group 3: Legal Considerations - While rescheduling would ease research restrictions and tax burdens, it does not eliminate federal criminal penalties for recreational use, and marijuana would still remain illegal under federal law [4]. - The conflict between federal law and state laws that have legalized cannabis will continue to exist [4].

Group 1 - U.S. cannabis-related stocks rebounded after reports that President Trump is expected to sign an executive order on cannabis rescheduling, boosting market sentiment [1][2] - The executive order aims to address the long-delayed rescheduling of cannabis, which has not served Americans who could benefit from its medical use [1] - The White House plans to reclassify cannabis from a Schedule I controlled substance to a Schedule III substance, which includes drugs with recognized medical uses [1] Group 2 - If the rescheduling is implemented, cannabis companies are expected to benefit from tax reductions and face fewer restrictions on interstate product distribution, improving profitability and operating conditions [2] - Following Trump's confirmation to advance the cannabis rescheduling plan, cannabis stocks like MSOS experienced a quick recovery in market sentiment [2] - Notable multi-state operators in the U.S. cannabis market include Ascend Wellness, Curaleaf Holdings, Cresco Labs, Green Thumb Industries, Trulieve Cannabis, Ayr Wellness, Verano Holdings, and Jushi Holdings [3]

Tilray’s jump in a broad cannabis rally shows how shifting U.S. policy signals are jolting traders, today, Dec. 16, 2025.NASDAQ : TLRYTilray BrandsToday's Change( 27.54 %) $ 3.01Current Price$ 13.94Key Data PointsMarket Cap$1.3BDay's Range$ 10.50 - $ 14.5552wk Range$ 3.51 - $ 23.20Volume47MAvg Vol9MGross Margin20.17 %Tilray Brands (TLRY +27.54%), global medical cannabis producer, closed Tuesday’s session at $13.94, up 27.54%. Trading volume reached 46.8 million shares, about 525% above its three-month avera ...

Core Viewpoint - Cannabis stocks experienced a significant surge, with Tilray Brands rising over 32%, Canopy Growth increasing over 23%, SNDL up over 19%, Aurora Cannabis rising over 11%, and Cronos Group gaining over 5% due to reports that President Donald Trump is considering reclassifying cannabis to a lower risk category [1] Group 1 - Tilray Brands (TLRY.US) saw an increase of over 32% [1] - Canopy Growth (CGC.US) rose by more than 23% [1] - SNDL (SNDL.US) increased by over 19% [1] - Aurora Cannabis (ACB.US) experienced a rise of over 11% [1] - Cronos Group (CRON.US) gained over 5% [1] Group 2 - Reports indicate that President Trump is expected to push for the reclassification of cannabis as a "lower risk drug" [1] - Trump is considering moving cannabis from Schedule I, which indicates no medical use and high abuse potential, to Schedule III, which includes substances with lower dependency and addiction potential [1]

Core Viewpoint - Cannabis stocks experienced a significant surge, with Tilray Brands (TLRY.US) rising over 32%, Canopy Growth (CGC.US) increasing over 23%, SNDL (SNDL.US) up over 19%, Aurora Cannabis (ACB.US) gaining over 11%, and Cronos Group (CRON.US) climbing over 5% due to reports that President Donald Trump is considering reclassifying cannabis to a lower harm category [1] Group 1 - Tilray Brands (TLRY.US) saw an increase of over 32% [1] - Canopy Growth (CGC.US) rose by more than 23% [1] - SNDL (SNDL.US) experienced a gain of over 19% [1] Group 2 - Aurora Cannabis (ACB.US) increased by more than 11% [1] - Cronos Group (CRON.US) rose by over 5% [1] - Reports indicate that Trump is considering moving cannabis from Schedule I to Schedule III, indicating a potential shift in regulatory stance [1]

Core Viewpoint - The stock prices of major cannabis companies surged significantly following reports of President Trump's plans to relax federal regulations on marijuana, with notable increases in premarket trading [1][2]. Group 1: Stock Price Movements - Tilray Brands (NASDAQ:TLRY) saw a price increase of 34.88%, while Canopy Growth (NASDAQ:CGC) rose by 27.46% in premarket trading [1]. - Other companies also experienced substantial gains: Aurora Cannabis Inc. (NASDAQ:ACB) surged 20%, Cronos Group Inc. (NASDAQ:CRON) gained 19%, Organigram Global Inc. (NASDAQ:OGI) rose 12%, and SNDL Inc. (NASDAQ:SNDL) increased by 34.7% [1]. Group 2: Regulatory Changes - The surge in stock prices was attributed to news that Trump plans to instruct federal agencies to reclassify marijuana as a Schedule III drug, which would change its regulatory status [2][3]. - This reclassification would subject cannabis companies to different tax regulations, potentially attracting more investments and placing marijuana in the same category as substances like steroids and Tylenol with codeine [3]. Group 3: Historical Context - Trump had previously hinted at this reclassification in August, indicating a consistent approach towards cannabis regulation [3]. - The anticipated change is expected to occur early next year, moving marijuana from a category that includes heroin to a lower tier for less dangerous substances [4].

Core Viewpoint - The potential reclassification of cannabis by President Trump from Schedule I to Schedule III is expected to significantly benefit the cannabis industry, leading to a surge in stock prices for major cannabis producers in the U.S. [1][2] Group 1: Market Reaction - Major cannabis producers saw substantial stock price increases in pre-market trading, with Tilray Brands (TLRY.US) rising over 30%, Canopy Growth (CGC.US) up 23%, Aurora Cannabis (ACB.US) increasing by 20%, SNDL (SNDL.US) gaining 14%, and Cronos Group (CRON.US) up 12% [1] - The market response indicates strong investor optimism regarding the potential regulatory changes surrounding cannabis [1] Group 2: Regulatory Context - President Trump is considering moving cannabis from Schedule I, which indicates no medical use and high abuse potential, to Schedule III, which includes substances with accepted medical uses but some potential for abuse [1][2] - Schedule III drugs include substances like ketamine and anabolic steroids, while Schedule I includes LSD and heroin [2] - The Biden administration previously proposed a similar reclassification in March 2024, but the DEA canceled related hearings [2] Group 3: Political and Industry Implications - Trump's discussions with key officials and cannabis industry executives suggest a serious consideration of the reclassification, which could alleviate criminal penalties for personal use and remove certain federal tax and business barriers [2] - The reclassification could improve the operating environment for legal cannabis businesses and their employees [2] - Robert F. Kennedy Jr., nominated by Trump for the Department of Health and Human Services, has advocated for ending cannabis criminalization and implementing a regulated sales system [3]

Group 1: Broadcom and AI Trade - Broadcom is facing margin concerns after a strong Q4 performance, with expectations of a 100 basis points sequential decline in Q1 gross margin due to increased AI revenue share [4] - The company has a significant backlog of $73 billion in AI product orders scheduled over the next six quarters, but this includes lower-margin system sales [5] - Broadcom's market capitalization has surpassed that of Meta and Tesla, highlighting its importance in the AI sector following a 78% year-to-date rally [3] Group 2: Cannabis Industry - Cannabis producer stocks are rising on reports that President Trump may advocate for reclassifying marijuana from Schedule I to Schedule III, which would recognize its medical applications [6][7] - A call was held involving Trump and several cannabis industry executives to discuss the reclassification proposal, although no final decision has been made [7] Group 3: Anheuser-Busch InBev - Anheuser-Busch InBev plans to close its Merrimack, N.H. brewery by early 2026 as part of a modernization effort, aligning with closures at other sites [8][9] - The company holds a leading position in the U.S. beer market with approximately 33% market share, with Michelob Ultra being the top-selling beer by volume [10]