Tilray Eyes $45 Billion European Market, But Profitability and Risks Remain Concerning
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Tilray sees the $45 billion European medical cannabis market as a huge opportunity for growth and expansion. Recent reform in Germany will significantly increase Tilray's production capacity and revenue potential.
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Tilray already has a strong presence in Europe, including a distribution arm that generated over $67 million in revenue last quarter. More European markets opening up would be very positive.
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However, more revenue doesn't necessarily mean profitability. Tilray posted a net loss last quarter despite revenue growth. Profitability improvements are key.
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Full legalization and medical reform across Europe could take a decade or more to materialize. The $45 billion total market is a very long-term possibility.
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Tilray remains a high-risk, speculative stock. While new opportunities are encouraging, Tilray's ability to capitalize profitably is uncertain. The stock is not a buy for most investors.