Green Thumb's DEA Registration: A Historic Move
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: Fool
- Industry Transformation Opportunity: The DEA's rescheduling of marijuana to Schedule III on April 23, 2026, signifies a shift in perception, categorizing it as having 'moderate to low potential for physical and psychological dependence,' laying the groundwork for the normalization of the medical cannabis industry.
- Strategic Move by Green Thumb: On May 4, 2026, Green Thumb Industries submitted applications to register its state-licensed medical cannabis operations, with CEO Ben Kovler stating that this step will shape the future of medical cannabis in America.
- Investor Confidence Boost: Kovler noted during the quarterly conference call that the DEA registration is expected to attract a significant influx of institutional investors, which could drive Green Thumb's stock price higher and reinforce its position as a leading multistate cannabis operator.
- Research Collaboration Potential: The rescheduling of cannabis may lead to research partnerships with biotech and pharmaceutical companies, enhancing industry development and strengthening Green Thumb's competitive edge in the market.
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Analyst Views on NDAQ
Wall Street analysts forecast NDAQ stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 90.880
Low
101.00
Averages
111.50
High
123.00
Current: 90.880
Low
101.00
Averages
111.50
High
123.00
About NDAQ
Nasdaq, Inc. is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. The Company manages, operates and provides its products and services in three business segments: Capital Access Platforms, Financial Technology and Market Services. Its Capital Access Platforms segment comprises Data & Listing Services, Index and Workflow & Insights. The Financial Technology segment comprises Financial Crime Management Technology, Regulatory Technology and Capital Markets Technology businesses. Its Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading. It operates over 19 exchanges across several asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange-traded products (ETPs).
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Rule Change: Nasdaq's new rule allows companies to enter the Nasdaq-100 index after just 15 trading days post-IPO, which could lead to a surge in SpaceX's stock value on July 7, potentially adding $200 billion to $270 billion in market capitalization.
- Investor Caution: Despite the excitement surrounding SpaceX's IPO, historical trends indicate that many mega-IPOs perform poorly in their early days, advising retail investors to be cautious and avoid chasing hot stocks.
- Valuation Risks: SpaceX's price-to-sales ratio is nearly 94, significantly higher than the typical range of 30 to 45 for industry peers, and coupled with substantial operating losses and a capital-intensive model, this could diminish its post-IPO appeal.
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- Nasdaq Rule Change: A new Nasdaq rule allows for rapid inclusion into the Nasdaq-100 index within 15 trading days post-IPO, potentially leading to a significant stock price surge on July 7, with estimated inflows of $22 billion to $27 billion from index funds.
- Overvaluation Risks: SpaceX's price-to-sales ratio is nearly 94, significantly higher than the historical range of 30 to 45 for hot IPOs, indicating potential overvaluation, compounded by substantial operating losses and a capital-intensive business model.
- Historical Performance Warning: Since the late 1990s, many large IPOs have stumbled post-debut, with examples like Facebook and Saudi Aramco showing that retail investors often incur losses, suggesting caution regarding SpaceX's upcoming IPO.
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- Capital Expenditure Raises Eyebrows: The $12.7 billion in capital expenditures incurred by xAI post-merger has caught analysts' attention, indicating SpaceX's substantial investment in AI and its strategic positioning for future business.
- Investor Confidence Challenge: While SpaceX's TAM figure has sparked market excitement, skepticism about its realizability persists, akin to challenges faced by Tesla, suggesting that future investor assessments of SpaceX will hinge on perceptions of its primary business direction.
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- Historic IPO Plan: SpaceX is set to list on NASDAQ with a valuation of approximately $1.75 trillion, making it the largest IPO in history and instantly positioning it as the largest industrial company in the market, showcasing its leadership in the aerospace sector.
- Revenue Source Analysis: Starlink, as SpaceX's cash cow, generated $11.4 billion in revenue last year, accounting for about 60% of the company's total revenue, indicating its strong competitive position in the satellite internet market.
- Massive Market Potential: SpaceX's S1 filing reveals a total addressable market of $28.5 trillion, with $22.7 trillion related to enterprise applications, highlighting its long-term growth potential, particularly in the strategic xAI sector.
- Investor Confidence Challenge: Despite the enormous market potential, there is significant skepticism regarding the $28.5 trillion addressable market figure, and investors' perceptions of SpaceX's future business will directly impact its stock performance post-IPO.
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