Tilray is a licensed producer of marijuana in British Columbia, Canada. It was the very first cannabis producer to have an IPO on the NASDAQ three months ago. The price was at $17 per share. Yesterday, it closed at almost $155 which made it the largest cannabis company on Earth with respect to market capitalization. The CEO went on a TV show and said that one day Tilray will be a $100 billion company which translates to a rough share price of $1,000.
That was a very dumb move. This is likely how it played out today:
- an epic short squeeze
- sly speculators jump in
- also, attracting noobs with a FOMO mentality
- speculators flip shares
- noobs become bag holders
Today, in only 52 minutes, Tilray's share price went from $300 to $151. Then, in 6 minutes, it spiked to $217. NASDAQ had to halt Tilray four times because of its crazy crashes and spikes. Tilray might well be a good long term investment but right now it's one spectacular bubble.
Prediction: Before the end of October, Tilray won't be the #1 cannabis company with respect to market cap. Canopy Growth Corporation will have regained the crown.