So why not invest in the #1 Craft Beer Instead? Tilray would need to get out of the cannabis business or significantly scale back on it for its bottom line to improve. But that doesn't appear to be the plan, as it recently closed on its acquisition of Canadian cannabis producer Hexo, which will further entrench it in the Canadian marijuana market and may only exacerbate these problems.
Investors should avoid Tilray Brands until it makes serious changes
Tilray has diversified into other areas besides cannabis, including alcohol, by making acquisitions. But as you can see from the earlier chart, cannabis has the potential to create a huge hole for the business, one that the other segments may not be strong enough to offset.
Either the other segments need to become more significant parts of Tilray's operations, or it needs to significantly scale back its cannabis business. If it were to do that, Tilray would be in much better position to potentially turn a profit.
Until it does something drastic to minimize its exposure to the cannabis segment, this is going to continue to be a very risky investment to hold, and one that investors are simply better off avoiding.
1 Chart That Tells You All You Need to Know About Tilray Brands' Biggest Problem | Nasdaq