Cannabis Stocks Can't Stop Rallying – Tilray Rockets Another 27%[Stocks](https://moneymorning.com/category/article/stocks/) # Cannabis Stocks Can't Stop Rallying – Tilray Rockets Another 27%  by Rich Duprey  December 17, 2025  Share it: Marijuana stocks exploded higher on Friday, December 12, 2025, fueled by reports that President Donald Trump is preparing to issue an executive order directing federal agencies to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act. This potential shift, which would acknowledge cannabis's accepted medical use and lower abuse potential, sent shockwaves through the sector. **Canopy Growth**( [CGC](https://moneymorning.com/stocks/cgc/)) surged 54%, while **Tilray Brands** ( [TLRY](https://moneymorning.com/stocks/tlry/)) jumped over 44% in a single session. The [rally reflected investor optimism](https://moneymorning.com/2025/12/15/canopy-growth-soars-54-on-marijuana-reclassification-plans-time-to-buy/) about reduced federal restrictions, easier access to banking, lower tax burdens, and unlocked research opportunities. Although a White House official noted no final decision had been made, the speculation alone ignited massive volume and gains across cannabis-related equities. ## What Rescheduling Could Mean for Tilray Tilray Brands is a global leader in cannabis production, distribution, and branded consumer products, and stands to benefit significantly from rescheduling – though the impact would be indirect and gradual. As a Canadian-based company with substantial international medical cannabis operations and a diversified portfolio including beverages and wellness products, Tilray has limited direct U.S. plant-touching exposure due to current federal prohibitions. However, a Schedule III classification could open doors.  Key potential advantages include relief from Section 280E tax restrictions for U.S. operators (boosting sector profitability and attracting capital), improved banking access, and easier interstate commerce. For Tilray specifically, management has highlighted a possible $300 million to $500 million revenue opportunity by capturing 3% to 5% share of the $10 billion U.S. medical cannabis market after rescheduling. This could accelerate growth in Tilray's medical brands and exports. Additionally, rescheduling would facilitate broader pharmaceutical research, potentially validating cannabis-derived therapeutics where Tilray has expertise. The company's European and Canadian medical dominance – coupled with recent product launches like premium vapes – positions it to expand if U.S. medical channels open up. ## No Overnight Transformation Ahead Importantly, rescheduling won't happen instantly. Even if President Trump issues an executive order today, the process involves administrative rulemaking by the DEA and HHS, public comment periods, and potential legal challenges. Experts estimate finalization could take six months to 18 months or longer, with precedents showing delays amid political pushback. Tilray must continue navigating the current restrictive environment, relying on its strong Canadian adult-use market, international growth, and non-cannabis diversification, such as craft beer and spirits. After rallying 44% on Friday – and giving back around 10% on Monday amid profit-taking and uncertainty – TLRY jumped another 27% on yesterday. Over just three days, shares are up approximately 65%. How much higher can it go? While momentum could carry Tilray further on confirmed policy steps, volatility remains high. ## Bottom Line Following this massive run-up, TLRY is likely poised for a significant pullback. The stock still operates in today's federally prohibitive landscape, where U.S. entry remains blocked without full rescheduling, decriminalization, or legalization. Any eventual benefits will hinge critically on final regulatory details, potential congressional or legal opposition, and Tilray's execution amid competition and margin pressures. While rescheduling optimism is warranted long-term, near-term trading feels speculative – prone to sharp reversals if timelines slip or the headlines fade. Investors should approach with caution, viewing TLRY as a high-risk policy play rather than a stable growth story. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Company This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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