Retail traders are cheering on Tilray's 27% pop after the cannabis company's first earnings report since merging with Aphria
- 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."
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 $16.18 Wednesday, the highest point in over two weeks, but still well below its post-IPO record of $300 in 2018.
"$TLRY this is going back to $150. 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 $33.6 million for the fiscal fourth quarter, compared to a loss of $84.3 million from the prior year. EBITDA nearly quadrupled to hit $12.3 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 $35 million in synergies to date - well on our way to delivering $80 million in cost savings over the next 16 months," said Tilray CEO Irwin D. Simon.