Tilray Shares Struggle to Find Footing Following Reverse Stock Split

The first full week of trading after Tilray Brands' 1-for-10 reverse stock split concluded with notable losses, casting doubt on the immediate efficacy of the maneuver. Intended to bolster the share price and secure compliance with Nasdaq listing requirements, the technical adjustment instead preceded a slide in value, prompting swift reassessments from Wall Street analysts.

Effective December 1, the consolidation was a strategic move to lift the nominal trading price of Tilray's stock. The initial market reaction, however, was far from celebratory. By the close of the week ending Friday, the cannabis company's equity had shed approximately 10% of its value. A minor rebound was observed in Friday's session, with shares gaining between 1.4% and 1.8% to settle in the range of $7.32 to $7.35. This slight uptick did little to offset the broader downward pressure that emerged immediately post-split, leaving investors to watch whether the $7.00 level can serve as a durable support zone.

Wall Street Revises Targets

In the wake of the corporate action, financial institutions have moved to update their valuations. A particularly stark revision came from analysts at TD Cowen, who slashed their price target for Tilray Brands from $25 to $10 per share.

Notably, the firm maintained its "Buy" rating alongside this significant reduction. This suggests that while the analysts still perceive opportunity at current price levels, their assessment of the company's near-term growth potential has been tempered. The revised target incorporates both the reduced share count and lowered earnings expectations, citing persistent competitive headwinds in the Canadian cannabis market and operational challenges within its craft beer segment.

Should investors sell immediately? Or is it worth buying Tilray?

Operational Realities Take Center Stage

Beyond the financial engineering, company executives are focusing on core business initiatives. On December 4, Tilray unveiled its "Cannabis Holiday Gift Guide 2025," a tactical marketing effort aimed at capturing seasonal consumer spending in its home Canadian market.

Nevertheless, the firm's fortunes remain tethered to the broader sector's dynamics. Investors are now weighing whether the benefits of the reverse split—primarily the avoidance of a Nasdaq delisting—can outweigh the operational realities of a still-struggling industry. With the immediate listing threat averted, market attention is shifting squarely to Tilray's ability to generate sustainable cash flow and organic growth.

The path forward now hinges on whether buying interest can solidify at these lower price points. As the market digests the completed technical adjustment, the coming sessions will reveal if the recent stabilization attempts are sustainable or if further commentary from the analyst community will reignite selling pressure.