Tilray Inc. (TLRY) shares unexpectedly plunged 5.36% in intraday trading on Thursday, despite the cannabis giant reporting better-than-expected third-quarter results. This sharp decline has left investors and analysts perplexed, as the company's financial performance seemed to paint a positive picture.

The Q3 earnings report showed promising signs for Tilray, with revenue reaching $209.5 million, surpassing analyst estimates of $204 million and representing a 4.7% year-on-year growth. The company highlighted double-digit growth in its Canadian adult-use and international cannabis segments, as well as operational improvements across its beverage and wellness divisions. Notably, Tilray's operating margin saw a significant improvement, rising to 1% from -18.3% in the same quarter last year.

Despite these encouraging figures, the stock's dramatic fall suggests that investors may be focusing on other factors not immediately apparent in the earnings report. Possible explanations for the sell-off could include concerns about future growth prospects, potential challenges in international markets, or broader industry headwinds not addressed in the earnings call. It's also possible that the market had even higher expectations that weren't met, despite the positive results. As trading continues, analysts and investors will likely scrutinize the earnings report and call transcript for any hidden red flags that could explain this puzzling market reaction.