What Happened?

Shares of cannabis company Tilray Brands (NASDAQ: TLRY) fell 1.8% in the morning session after the U.S. government passed a spending bill that included provisions to re-criminalize certain hemp-derived THC products. 

The last-minute provision effectively targeted intoxicating hemp products, such as Delta-8, that had been legalized under the 2018 Farm Bill. This development was viewed as a setback for Canadian cannabis companies like Tilray, which had considered the hemp-derived product segment a key pathway into the lucrative U.S. market. In response to the legislative change, Tilray stated that it expected “no material revenue impact” from the ban.

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What Is The Market Telling Us

Tilray’s shares are extremely volatile and have had 85 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 2 months ago when the stock gained 41.4% on the news that U.S. President Donald Trump endorsed the use of cannabidiol (CBD) for senior healthcare in a social media post. 

Over the weekend, Trump posted on his Truth Social platform, suggesting that hemp-derived CBD could 'revolutionize senior healthcare' and serve as an alternative to prescription drugs. His comments acted as a major catalyst for the cannabis industry, sparking a broad rally that lifted shares of other major players like Canopy Growth and Aurora Cannabis. This endorsement fueled investor optimism regarding the potential for wider adoption of CBD products and a more favorable regulatory environment, adding to existing hopes for the reclassification of marijuana.

Tilray is down 23.6% since the beginning of the year, and at $1.12 per share, it is trading 46.9% below its 52-week high of $2.10 from October 2025.

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