Yahoo Finance Live anchors discuss quarterly earnings for SNDL.
JULIE HYMAN: There is no debate that meme stocks have returned as of late. One of them is a company called-- well, the artist formerly known as Sundial Growers--
BRIAN SOZZI: SNDL.
JULIE HYMAN: --that is now formally renamed itself as SNDL.
BRIAN SOZZI: Silicon Valley move right there.
JULIE HYMAN: Do we--
BRIAN SOZZI: Sandal.
JULIE HYMAN: --still call it Sundial, though?
BRIAN SOZZI: I call it sandal.
JULIE HYMAN: So the corporate name is now SNDL for this company, which is a distributor of alcohol and cannabis in Canada. This is the largest liquor seller in Canada now, actually, after an acquisition that they made. The company coming out with revenue that beat estimates. It reported after the bell on Friday, which is interesting. You don't get too many companies that do that. And so the shares are down--
BRIAN SOZZI: That's a big loss.
JULIE HYMAN: --a lot over the past year, by the way, but they are getting a little bit of bump up. And I would say, this is definitely meme-- has been memed.
BRIAN SOZZI: These-- I mean, to your point, Julie, a major player.
JULIE HYMAN: Maybe it's down this morning. I thought it was up this morning.
BRIAN SOZZI: Yeah, a major player in the liquor market. I mean, gross revenue for their liquor business, $148.6 million. They're operating under the brands Wine and Beyond, Liquor Depot, and Ace Liquor. I mean, all three places I would go to if I was in Canada. Makes sense to me.
BRAD SMITH: Well, I mean, it's been the big question of how, regulatory-wise, it's going to be a more favorable environment. And there's been so much logjam, even on the top. Even if you have people on both sides of the aisle that are saying, yeah, we support this and our constituents want this, it's still not moving forward on a legalization perspective more broadly federally. And that impacts anybody like a Sundial, anybody like an Aurora Cannabis, anybody like a Khronos Group even.
And so with all of that considered, that also has an impact on some of the investments that even the traditional companies have made that were looking to get into the cannabis space through infused beverages. And I think across the board, whether you're vertically integrated or whether it's a stake in a company that you've taken, that still is a headwind risk on your balance sheet that you're holding onto right now.
BRIAN SOZZI: Yeah, I'm glad you mentioned the beverage space. One of the top stories all weekend here at Yahoo Finance, and still, the ticker is still trending, is Tilray. We go back to what Tilray-- and the story that is getting a lot of attention as to what Irwin Simon, when he came on about a week and a half ago, two weeks ago, talked about potential for the cannabis market. I mean, The Street investors eating the story up here on our platform.
JULIE HYMAN: Yeah, I don't know that Sundial has specific plans to get into the US if there's legalization here. They seem to have really staked a flag in Canada, especially with that liquor business, which is something that other companies-- I mean, Tilray is in the beverage business in the US. It is not in the cannabis business in the US, but it is in the beverage business. I mean, the thing about cannabis legalization is, like--
BRIAN SOZZI: Is it going to happen?
JULIE HYMAN: Right. I mean, I think-- you know, the thinking has always been, it's going to happen eventually.
BRAD SMITH: Right.
JULIE HYMAN: Inevitably. But, like, when is important.
BRAD SMITH: Yeah.
JULIE HYMAN: And it doesn't seem like-- it seems like the ship has sailed again this year, and that it's not going to happen this year. So these guys are still going to have to wait.