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Cannabis stocks were all the hype in late 2020 to early 2021, before fading away for years, but a similar, but smaller, rally seems to be starting up again.

The catalyst came as President Trump shared a video on the Truth Social platform that promoted the potential health benefits of cannabidiol (CBD), particularly for senior citizens. The video argued that hemp-derived CBD could revolutionize senior healthcare and called for Medicare to cover cannabis-related treatments.

Given that cannabis legalization at the federal level has long been a popular policy among Americans, Trump may be the one to push the change through. The video obviously does not contain any information regarding that tentative goal, but many saw Trump sharing that video as a hint that he may do something in favor of CBD products.

Tilray Brands (TLRY) stock surged due to the news and is up 39% in one day as of writing.

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Should you buy TLRY stock now?

I would not put serious money into TLRY stock just yet. The market is trading the stock based on “Truths” instead of fundamentals, and a pullback is likely as headlines fade. Unless Trump shares follow-ups regarding the video he shared, sentiment will likely cool down back to normal.

TLRY stock did find $1.5 to be a strong resistance line before, so holding above it does show strength. But in all likelihood, this is a one-time event, and the market will return to pricing the stock based on fundamentals. A true cannabis legalization event is likely years away.

And Tilray will have a hard time keeping the lights on until then. The company posted $2.2 billion in losses in the latest fiscal year. The stock has been diluting rapidly, with outstanding shares rising from 240 million in 2020 to 1.06 billion in 2025. Net cash is negative.

I wouldn’t buy.

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