Shares of Tilray (NASDAQ:TLRY) lost more than a third of their value last month, according to data provided by SP Global Market Intelligence. The marijuana company plummeted back down to earth after enjoying torrid gains earlier in the year.
From its closing price on the day of IPO on July 19, Tilray’s stock soared an incredible 541% by the end of September. Investors bid up Tilray’s shares in a frenzy during the run-up to the legalization of recreational marijuana use in Canada. Bullish comments by Tilray CEO Brendan Kennedy during an interview on CNBC further stoked investor optimism, fueling additional demand for its stock.
Yet Tilray appears to have gone too far, too fast. At one point, its market cap surpassed that of industry leader Canopy Growth (NYSE:CGC) — a company with nearly three times the production capacity as Tilray and billions more in cash