Tilray Inc. (TLRY) saw its shares drop sharply by 7.21% during intraday trading on Friday, despite pre-market gains following President Trump's executive order reclassifying marijuana as a Schedule III drug.

The decline reflects a "sell-the-news" reaction, as investors had anticipated more significant policy changes, such as recreational legalization or broader commercial benefits. While the reclassification eases restrictions on medical marijuana research, it does not legalize recreational use, leading to profit-taking after initial optimism. Tilray's announcement of Tilray Medical USA, focused on medical-grade products, failed to offset the disappointment over limited immediate commercial impacts.