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Trump Order Could Spark Cannabis Stock Boom
17 Dec
Summary
- US may reclassify marijuana to Schedule III, impacting cannabis stocks.
- Tilray's stock surged 44% on Friday due to potential reclassification.
- Tilray reported record revenue of $210 million in fiscal Q1 2026.
Reports indicate a potential executive order from President Trump that could reclassify marijuana from a Schedule I drug to the less restrictive Schedule III category. This change would significantly benefit cannabis companies by allowing business expense deductions under IRS rules and improving access to banking services. Such a development has already spurred a surge in Canadian cannabis stocks, with Tilray (TLRY) experiencing a notable 44% increase on Friday alone.
Tilray, a major player in the global cannabis market with a $1.4 billion valuation, reported strong financial performance in its fiscal first quarter of 2026, ending in August. The company achieved record revenue of $210 million, marking a 5% year-over-year increase. This growth was fueled by double-digit gains in both domestic and international cannabis markets, with adult-use sales in Canada rising 12% and international revenue climbing 10% year-over-year, despite facing some headwinds.
