Shares of cannabis producer Tilray Brands, Inc. TLRY surged 44.1% on Friday, Dec. 12, 2025, on reports that President Donald Trump is expected to sign an executive order as early as Monday that would reclassify marijuana under federal law. The rally marked one of TLRY’s strongest single-day gains in years and reignited investor enthusiasm across the battered cannabis sector.
The likely move would represent a significant shift in U.S. drug policy, potentially easing longstanding federal restrictions that have limited access to banking, raised tax burdens and constrained institutional investment for marijuana-related businesses. While details of the executive order have not been officially confirmed, market participants interpreted the reports as a signal that the government may adopt a more permissive regulatory stance toward cannabis.
Tilray, part of the Zacks Medical - Drugs industry and one of the most recognizable cannabis companies, has struggled alongside peers amid persistent losses, pricing pressure and regulatory uncertainty in the United States. In fact, before Friday’s monumental jump, the stock fell 36.6% this year. The prospect of reclassification fueled hopes that U.S. operators could see lower compliance costs and improved profitability, while international companies like Tilray could gain clearer pathways to expand or partner more aggressively in the U.S. market.
The surge in TLRY also lifted other cannabis-related stocks, with investors betting that reclassification could unlock broader reforms over time, including expanded research, easier access to capital, and greater acceptance among mainstream investors. Canopy Growth Corporation CGC and Aurora Cannabis Inc. ACB, two much smaller peers from the same industry, jumped 54% and 18.7%, respectively, in the session. While TLRY and CGC carry a Zacks Rank #3 (Hold), ACB has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Despite Friday’s rally, the sector remains highly volatile and dependent on follow-through from policymakers. Until the executive order is formally signed and its implications fully outlined, uncertainty will continue to hang over cannabis stocks. Still, the sharp jump in Tilray shares highlighted how sensitive the industry remains to any sign of federal reform, and how quickly sentiment can shift on the prospect of meaningful regulatory change.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
