💰 Cannabis Stocks Light Up

OUR PARTNER: TIPSY PUTT

Why ‘Eatertainment’ Brands Are Worth Billions

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But Tipsy Putt’s business model cuts that number to less than 20%.

It’s called “Eatertainment,” the same model that turned TopGolf and Bowlero into billion-dollar companies.

Tipsy Putt is on a mission to dominate the mini golf slice of the Eatertainment space. Their mini golf, craft cocktails, and local eats have already drawn 5,000+ active members. And out of those three revenue streams, the highest-margin one (mini golf) requires no inventory whatsoever.

The result?

• Five profitable California locations

• 22x revenue growth from 2020-24

• 75% more potential revenue per square foot

Now, they’re bringing this model to San Francisco, America's #3 foodie city. It’s going to address a Bay Area market of 7 million people. You can get up to 32% bonus shares in Tipsy Putt’s SF flagship location when you invest by April 29th at midnight PT.

I’m Ready to Invest

^{This is a paid advertisement for Tipsy Putt Regulation CF offering. Please read the offering circular at https://invest.tipsyputt.com/}

THE MAIN EVENT
Cannabis Stocks Light Up 💨

After years of false starts, the cannabis industry finally got a real win this week.

The Department of Justice officially moved state-licensed medical marijuana from Schedule I to Schedule III, a shift investors have been waiting for for decades.

The reaction?

Stocks ripped on the leak, then cooled off once the fine print hit. It was a textbook case of buy the rumor, sell the news. But beneath the volatility, something meaningful actually changed.

From Hype To Reality

When news first leaked midweek, cannabis stocks went vertical.

Names like Curaleaf, Tilray, and the ETF MSOS surged 15% to 25% in a single session as investors rushed to price in what many thought would be a “magic wand” moment for the industry.

Then the actual order dropped, and the details mattered.

• The change applies specifically to medical marijuana, not the full recreational market

• Interstate commerce is still restricted

• Cannabis is not federally legal yet

• A broader ruling on recreational use is pending, with a hearing expected in July

So the initial excitement gave way to a more sober reality. Still positive, just not an overnight transformation.

One Change That Actually Moves The Needle

Even with those limitations, there’s one piece of this ruling that is a game-changer: the removal of 280E taxes for medical operators.

For context, 280E is a tax rule from the 1980s that treated cannabis companies like criminal enterprises. While cannabis companies could deduct the cost of goods sold, they could not deduct normal business expenses like rent, payroll, or marketing.

That led to absurd outcomes:

• Effective tax rates of 70% to 90%

• Companies paying taxes on income they didn’t actually keep

• Cash flow constantly squeezed, even for growing businesses

Under Schedule III, that goes away for medical operators.

These businesses can now deduct expenses like any other company, bringing tax rates closer to the standard 21% corporate level, which could double or even triple free cash flow overnight for some operators.

That’s why U.S. names led the rally.

The Easiest Way In… And Its Tradeoffs

If you were watching the action, you probably saw MSOS everywhere.

That’s the AdvisorShares Pure U.S. Cannabis ETF, and it’s the most direct way to own the core U.S. operators. It holds names like Curaleaf, Green Thumb, and Trulieve, which make up more than half the fund.

These are American businesses through and through. The catch is they can’t list on the NYSE or Nasdaq because cannabis is still federally illegal, so they trade on Canadian exchanges or OTC markets.

MSOS exists to solve that problem. It bundles them into one ticker you can buy like a normal stock.

That convenience comes with tradeoffs:

• Easy access to the biggest U.S. operators

• Direct exposure to the 280E tax relief story

• Highly concentrated in just a handful of names

• Higher fee (~0.8%) than typical ETFs, reflecting the niche exposure

• Relatively small fund size with under $1B in assets

• Still tied to regulatory risk and headline-driven volatility

MSOS jumped nearly 20% intraday on the news, with trading volume exploding.

As Dan Ahrens, the fund’s manager, put it: “This is the moment the U.S. cannabis industry has been building toward for many decades.”

Not All Green Was Created Equal

One of the more interesting parts of this move was the split between U.S. operators and Canadian names.

• U.S. companies rallied because their economics actually improved overnight.

• Canadian players like Tilray and Canopy Growth mostly moved on momentum… and then gave it back.

Tilray allegedly even used the spike to sell shares through a $180M at-the-market program. In simple terms, they used the hype to raise cash, diluting shareholders and sending the stock down nearly 12% by the end of the day.

You can argue that’s smart capital raising. You can also argue that it’s not the kind of management behavior you want to be on the other side of.

Where Does This Leave The Trade?

This is a real step forward, but it’s not the finish line.

What changed:

• Medical cannabis operators just got a massive tax break

• Profitability and cash flow should improve meaningfully

• The industry is moving closer to a formal regulatory framework

• Fewer barriers to medical research, paving the way for broader clinical use

What didn’t:

• Recreational cannabis is still in limbo

• Federal legalization hasn’t happened

• Large institutional capital is still mostly on the sidelines

The market isn’t pricing in full legalization yet. It’s pricing in progress with uncertainty. That distinction matters.

If anything, this week showed that cannabis is finally gaining real traction. But until the full regulatory smoke clears, expect volatility to stay high.

MARKET MOOD
Oil Rips Toward $100, Stocks Hang Near Highs 👀

Winners

Intel ($INTC) - Market Cap: $335.3B (Week-to-Date: +17.0%)

Intel popped after delivering its biggest earnings surprise in four years and beating expectations for a sixth straight quarter. CEO Lip-Bu Tan said demand is surging for AI inference—when models are actually used, not trained. That shift requires more CPUs, where Intel still controls about half the U.S. market. Oh, and new interest from SpaceX and Tesla didn’t hurt either.

GE Vernova ($GEV) - Market Cap: $309.1B (Week-to-Date: +14.6%)

GE Vernova is up 76% YTD and 242% over the past year, and apparently still has room to run. The company raised its revenue outlook as data center power demand heats up, with its heavy-duty turbine backlog now stretching into 2029. Orders jumped 32% to a record $163B, showing the AI buildout is far from over.

UnitedHealth ($UNH) - Market Cap: $322.0B (Week-to-Date: +9.2%)

UnitedHealth moved higher after showing it’s getting costs under control. The company beat earnings, improved its medical cost ratio, and raised its long-term profit outlook as it continues “right-sizing” operations. The question now: is this a real comeback… or just a healthy bounce?

Losers

Lululemon Athletica ($LULU) – Market Cap: $16.4B (Week-to-Date: -15.3%)

Lululemon dropped after naming Heidi O’Neill as its next CEO, and investors weren’t pleased. She’s a 28-year Nike veteran known for scaling operations, not fixing product issues. That’s a problem, because Lululemon needs its product soul back right now. Besides, Nike hasn’t exactly nailed its own turnaround—that stock is still down 66% over the last five years.

ServiceNow ($NOW) – Market Cap: $87.8B (Week-to-Date: -12.3%)

ServiceNow tumbled despite beating earnings, as the AI overhang on software continues. The company flagged a few delayed deals and gave cautious guidance, which was enough to spark a broad selloff across SaaS. When strong results still get sold, it tells you investors are worried about the future, not the present.

Tesla ($TSLA) – Market Cap: $1.17T (Week-to-Date: -6.7%)

Tesla slipped after earnings, even as its operating profit more than doubled. The issue wasn’t performance—it was the price tag. Tesla plans to spend $25B this year chasing robotaxis and its Optimus robot. Musk says it will pay off “in a very big way.” The market sees an exciting future, but an expensive bill.

OUR PARTNER: TIPSY PUTT

Steph Curry and John Stamos Walk Into a Bar

When an NBA superstar and a fan-favorite from Full House show up at your venue unprompted, something is working. That happened at Tipsy Putt when both Steph Curry and John Stamos became customers. Invest in Tipsy Putt’s new SF location by April 29th for up to 32% bonus shares.

I’m Ready to Invest

^{This is a paid advertisement for Tipsy Putt Regulation CF offering. Please read the offering circular at https://invest.tipsyputt.com/}

CHART OF THE WEEK
Inflation Eats Your Returns From Both Sides 🍽️

This chart reveals a simple pattern. When inflation is low, returns are higher. When inflation rises above 3%, returns drop across both stocks and bonds.

The reason is simple, but easy to miss.

Higher inflation pushes interest rates up, which lowers how much investors are willing to pay for future profits. So even if companies are growing, the market often values that growth less.

That’s why inflation isn’t some secret win for investors. Asset prices may rise, but usually not enough to outrun the headwind.

So, who actually benefits from inflation? Debtors, who see the real value of their debt get inflated away over time.

And in completely unrelated news… the national debt just passed $39T.

FAST FACTS
Bailouts, Bots, And Big Bills 🧾

✈️ Spirit may get rescued: The government is reportedly discussing a $500M lifeline for Spirit that could leave taxpayers owning up to 90% of the airline. [Read]

🤖 AI prices drop to near zero: Google is slashing voice AI costs to $25 per day for a 24/7 agent, seeking to underprice rivals to win market share. [Read]

🏥 America pays more for care: Families now pay $27K a year for coverage, with drug prices and hospital consolidation driving costs well beyond peer countries. [Read]

💼 Big Tech trims for AI: Meta plans to cut 10% of staff while Microsoft offers buyouts to 7% of employees, as companies free up cash to bankroll a $650B AI spending surge. [Read]

📱 Netflix chases snackable video: After a rough earnings reaction, Netflix may launch a vertical feed to keep users scrolling between full shows. [Read]

🚀 SpaceX courts Cursor: Musk struck a “try before you buy” partnership with Cursor, giving SpaceX a path to acquire it for $60B or walk away for a massive $10B breakup fee. [Read]

🌿 Medical marijuana gets relief: Trump’s DOJ moved state-licensed medical cannabis to Schedule III, unlocking tax deductions and research access for operators in 40 states. [Read]

WORDS TO REMEMBER
Money Isn’t The Only Asset To Protect 🧠

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