Retail traders are cheering on Tilray’s 27% pop after the cannabis company’s first earnings report since merging with Aphria

Tilray marijuana
  • Retail traders are cheering on Tilray’s 27% stock pop on Wednesday after the cannabis company turned in its first earnings report since merging with Aphria.
  • A Wall Street Bets post highlighted that the cannabis company increased EBITDA 285% year over year.
  • Tilray is far from it’s 2018 all-time highs but many retail traders seem optimistic the stock will rally “to the moon.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Retail investors on Wednesday cheered Tilray’s 27% single-day stock pop after the cannabis company recorded its first quarter of earnings after merging with Aphria.

The Toronto, Ontario-based firm jumped to an intraday high of $US16.18 ($AU22) Wednesday, the highest point in over two weeks, but still well below its post-IPO record of $US300 ($AU407) in 2018.

“$TLRY this is going back to $US150 ($AU203). Buy and hold!” one user said in Stocktwits. Another commented that the stock had potential to be “life-changing.” Tilray was trending #1 on Stocktwits Wednesday morning.

The cannabis company posted net income of $US33.6 ($AU46) million for the fiscal fourth quarter, compared to a loss of $US84.3 ($AU114) million from the prior year. EBITDA nearly quadrupled to hit $US12.3 ($AU17) million.

“Still down bad but we’re getting there. To the moon boyz!” one Reddit user commented on a WallStreetBet’s post highlighting the company’s 285% yoy adjusted EBITDA increase.

Tilray’s stock has fallen roughly 5% since it completed its merger with Aphria in May, but the company said it has already benefited from millions of dollars in cost savings from the combination.

“In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $US35 ($AU47) million in synergies to date – well on our way to delivering $US80 ($AU109) million in cost savings over the next 16 months,” said Tilray CEO Irwin D. Simon.

Read more: 
These 5 stocks offer the most potential for a short squeeze this week for retail investors, according to Fintel