Shares of Tilray (NASDAQ:TLRY) rose slightly on Jan. 3 and overnight after the company announced RIFF Boost, a collection of beverages infused with cannabis compounds. However, since the markets opened this morning, TLRY stock has dropped about 3.5%.
The products, one using berry flavors and the other vanilla, are only available in Canada, where cannabis is legal.
Before trading opened this morning, TLRY stock was trading at $2.36 per share with a market capitalization of a little over $1.7 billion. Fiscal 2024 revenue was estimated at $650 million.
Drink This
The new RIFF drinks are produced by Aphria, which Tilray acquired in 2021. The $685 million deal, announced in 2020, saw Tilray as the surviving company, only under Aphria’s management. Since the merger, Tilray stock is down 87%.
The Aphria merger brought beer into Tilray’s portfolio. The company has since expanded its beachhead, buying a collection of craft breweries from Anheuser-Busch (NYSE:BUD) last year.
For the most recently reported quarter, ending in August, Tilray lost $55.8 million, 10 cents per share, on revenue of $176.9 million. About $24 million of the revenue came from alcohol.
Tilray will next issue results on Jan. 9, with analysts expecting a loss of 6 cents per share.
Tilray calls RIFF its “premium cannabis brand.” It launched a line of pre-rolled cigarettes under the name in August. Tilray has about 20 different marijuana brands.
This is not the first beverage effort under the RIFF name. In 2021, Tilray announced a canned vodka cocktail called Sweetwater RIFF in the U.S. That product did not contain marijuana.
General sentiment on Tilray at Stocktwits remains bearish, but the message volume is high. However, comments after the RIFF announcement were generally positive on TLRY.
TLRY Stock: What Happens Next?
The big news for the marijuana industry this year is the opening of the New York market. It will be accompanied by a crackdown on illegal pot sales, which have most of the market in states where marijuana is legal.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
