TLDR
- Tilray stock surged 11.45% in a single trading day following President Trump’s endorsement of CBD for senior healthcare
- Cannabis stocks across the board rallied, with some companies seeing gains of nearly 20% in premarket trading
- Trump’s social media post suggested CBD could “revolutionize senior healthcare” and serve as an alternative to prescription drugs
- The rally comes despite Tilray’s poor recent performance, including a 20.58% decline over the past month
- Trump previously hinted at marijuana reclassification, which could reduce tax burdens and regulatory obstacles for cannabis companies
Tilray Brands experienced a dramatic 11.45% surge during Monday’s trading session. The cannabis company’s stock rally came after President Trump posted on Truth Social advocating for CBD use in senior healthcare.
CBD — Hemp & Cannabis: Trump just posted this on Truth Social.
An educational video on the Endocannabinold System
Are we about to see some cannabis legislation? @CannConActual pic.twitter.com/C8J97N7QdI
— Joshua Reid | Redpills.tv (@realjoshuareid) September 28, 2025
Trump’s Sunday evening post suggested that hemp-derived cannabidiol could “revolutionize senior healthcare.” He indicated CBD could help reduce disease progression and serve as an alternative to prescription drugs.
The presidential endorsement triggered widespread buying across the cannabis sector. Canopy Growth and Tilray both jumped nearly 20% in premarket trading. Cronos Group added 9.5% while Aurora Cannabis gained 13.7%.
Trump Administration Cannabis Policy Shift
The current administration has signaled potential changes to marijuana regulation. Last month, Trump indicated his administration was considering marijuana reclassification from its current Schedule I status.
Current federal law classifies marijuana as having high abuse potential with no accepted medical use. Former President Biden had directed health agencies to review this classification. The Department of Health and Human Services recommended moving marijuana to Schedule III status.
“Trump already hinted that they were planning to reclassify it,” said Daniela Hathorn, senior market analyst at Capital.com. “This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies.”
Reclassification would eliminate tax burdens under Section 280E. This provision denies standard business deductions to cannabis companies. Removing these restrictions could help companies list on major U.S. exchanges and attract institutional investors.
The regulatory changes would also narrow gaps between state and federal cannabis laws. Marijuana is legal in some form across nearly 40 states despite federal prohibition.
Mixed Performance Creates Volatility
Today’s rally stands in stark contrast to Tilray’s recent performance. The stock declined 4.70% over the previous week and dropped 20.58% during the past month.
However, longer-term results show extreme volatility typical of cannabis stocks. Tilray gained over 193% during the past three months before the recent decline.
The company’s fundamental performance remains challenging. Tilray recently completed its 2025 fiscal year ending May 31. Net revenue totaled $821.3 million, representing 4% growth primarily driven by beer industry acquisitions.
The company reported an operating loss of $2.3 billion for the full fiscal year. This included $2.1 billion in impairment charges on intangible assets and goodwill.
Tilray’s stock has declined more than 91% over the past five years. The company faces limited growth opportunities while federal marijuana prohibition continues.
Recent quarterly results showed mixed performance. Tilray exceeded earnings expectations but fell short of revenue forecasts. The company’s next quarterly earnings release is scheduled for October 9.
Institutional investors have shown reduced confidence recently. Goldman Sachs and other major firms reduced their Tilray positions in recent weeks.
Cannabis Sector Responds to Political Developments
The broader cannabis market showed strong response to Trump’s comments. The AdvisorShares Pure U.S. Cannabis ETF surged 25.2% and is tracking toward its biggest quarterly gain on record at around 70%.
“MSOS, the largest U.S. marijuana-focused ETF, is indicated up 20% at the open and benefiting from President Trump’s surprise Sunday support,” said Ben Laidler, head of equity strategy at Bradesco BBI.
Cannabis stocks remain highly sensitive to political developments and regulatory changes. Individual company performance varies widely within the sector.
Some stocks like Canopy Growth have lost half their value this year. Others including Cronos and SNDL have gained more than 30% during the same period.
The sector historically reflects changing political attitudes toward marijuana legalization. Each administration’s approach creates volatility as investors adjust expectations.
Market analysts suggest further upside potential if reclassification moves forward. However, fundamental business challenges remain for individual companies regardless of regulatory changes.
Trading volumes increased significantly across cannabis stocks during Monday’s session. The heightened activity reflects renewed investor interest following Trump’s healthcare-focused CBD endorsement.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
