Tilray’s Stock on the Rise Following Acquisition and Sales Growth

Tilray stock price (NASDAQ:TLRY) has been gaining steadily over the past 5 sessions, totalling a 7.87% uplift as the bulls aim to take control of the narrative.

The company recently revealed an acquisition deal that involves four craft breweries from the renowned Molson Coors Beverage Company. This move, paired with a robust report on fiscal fourth-quarter sales, has sparked investor interest and led to a noteworthy boost in TLRY stock.

After the acquisition news was released, Tilray's stock price experienced a near 3% climb. This increase was compounded by a more than 10% surge after the company announced its better-than-expected fiscal fourth-quarter sales on July 29.

Looking closely at the financials, Tilray's fiscal fourth-quarter after adjustments for net income were made, led to an earnings per share (EPS) of 4 cents. With consensus expectations on EPS for the quarter negative 1 cent, the outperformance has helped shift some of the downward momentum from earlier in the year. TLRY share price remains down 13.5% on a YTD basis,

Fiscal fourth-quarter net sales grew by an impressive 25%, with the company's cannabis net revenue rising 12% and its alcoholic beverage net revenue skyrocketing by 137%. The tremendous growth in the beverage segment can be attributed to strategic new products and recent acquisitions. Additionally, Tilray has maintained its number one position in the Canadian cannabis market and has also taken the lead in the European medical cannabis market, by focusing on new product development and geographic expansion.

Whilst Tilray's strategic moves in the market may present an optimistic narrative, caution remains the word of the day. The stock has found resistance numerous times at the $2 psychological level, and with TLRY yet to break that level on strength, you might want to keep an eye on the next steps.

While it's clear that Tilray is on an upward trajectory in terms of sales growth and expansion, the market's response in terms of stock valuation and fundamental performance indicators may take some time to align with these operational achievements.