Geometry Dash APK Hill Climb Racing APK
36.2 F
New York
Sunday, January 16, 2022

Charlotte’s Web Holdings Inc.’s (OTCMKTS:CWBHF) Growth Slowing As It Grapples With Regulatory Uncertainty For CBD

Must read

Bombardier, Inc. (OTCMKTS:BDRBF) Continues to Gain Momentum and Strength

Many stocks have managed to record significant gains in recent months and one that often flies under the radar is Bombardier,...

Grayscale Bitcoin Trust (Btc) (GBTC) Makes Big Move As Bitcoin Goes Wild

Bitcoin, the world’s biggest cryptocurrency by market cap, has been in the middle of a remarkable rally for the past few months...

Voyager Digital Ltd (OTCMKTS:VYGVF) Hits All-Time High on Download News

The remarkable rally enjoyed by several crypto assets over the course of the past months has also resulted in an increased demand...

Solar Integrated Roofing Corp (OTCMKTS:SIRC) Surges Higher On Sector Strength

The Solar Integrated Roofing Corp (OTCMKTS:SIRC) stock has come into sharp focus among investors and on Wednesday, the stock made significant gains...

Charlotte’s Web Holdings Inc. (OTCMKTS: CWBHF) is one of the leading cannabis brands globally, and it has gained significant attention and positive press for its focus in the burgeoning CBD market. However, like most cannabis companies in the past year, the company took a significant hit, and its growth has waned. 

Charlotte’s Web’s Q3 earnings slowed sequentially 

In the third quarter, the company reported revenue of $25.1 million, which was the same as the previous quarter. Its gross profit was around $17.9 million with a gross margin of 71.3%, which was a slight drop from the quarter before. As a result, the company incurred a net loss of $1.3 million in the quarter, which is a drop from the $2.2 million net income reported in Q2

Expectations in CBD sales are high, with Brightfield Group projecting overall sales to hit $22 billion by 2022. However, it appears like sales will struggle to hit that level in the CBD market, considering the FDA has equally not been positive about CBD. The FDA has indicated that the healing properties of CBD are yet to be proved.

Therefore regulatory uncertainty has remained to be a major hurdle for US-based marijuana companies. However, there is some hope after some members of Congress filed a bill that will see a change of the Federal Food, Drug, and Cosmetic Act, thus listing CBD as a supplement.

Charlotte’s Web enhancing production infrastructure 

The company has been increasing its production, and by last year, it had around 862 acres of hemp. It continues to expand, and it is building a new 137,000 sq. ft.facility that it will complete in two years. Equally, the company has increased the number of stores it sells through to almost 10,000. 

This presents massive potential for the company, but it will depend on consumer sentiments following the FDA’s negative comments. 

Because Charlotte’s Web is a market leader in the CBD market, any undesirable market conditions will result in a dip in sales, thus affecting performance as well as investor sentiment.  Sign-up below for continuing coverage on shares of $CWBHF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Latest article

iQSTEL Inc (OTCMKTS:IQST) Stock Makes a Big Move: Jumps 45% In a Week

In the past week, iQSTEL Inc (OTCMKTS: IQST) has emerged as a point of focus among a large number of investors and...

HUMBL Inc (OTCMKTS:HMBL) Stock Sees Big Bounce After Recent Slump

Since the beginning of 2021, HUMBL Inc (OTCMKTS:HMBL) had been one of the major movers from among penny stocks and had come into...

Dividend Stocks to Buy Now

A classic mistake that investors make when looking for dividend stocks is to just go for the biggest dividend yield. It makes...

88 Energy Ltd (OTCMKTS:EEENF) Stock Surges 40% But Can’t Hold Gains

The oil and gas company 88 Energy Ltd (OTCMKTS:EEENF) seems to have come back on to the radars of investors over the...

Net Savings Link Inc (OTCMKTS:NSAV) Stock is Getting Pummeled Again

Nowadays there are plenty of options for investors when it comes to making investments in the cryptocurrency and...
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet.
SmsVerifyer.com Affordable best sms verification service