Charlotte’s Web stock hit lows of $11.06 USD in mid-June, but at $18.07 USD at present, shares are resurging. In fact, in just over two weeks, they’ve packed on 63%. Let’s check out what’s happening with America’s favorite hemp brand, Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF).
Charlotte’s Web Stock Lull
The second quarter spelled disaster for many cannabis stocks; one of which was US’s Charlotte’s Web. According to the Motley Fool, during this period, “the Horizons Marijuana Life Sciences ETF [shed] 13% of its value and 25 marijuana stocks [lost] at least 20% of their value.”
There were certain reasons for the sector-wide downturn; issues with supply and regulation in Canada, high-taxes encouraging an ever-present Black Market in the US, and tensions in the American/China trade war increased, to name a few.
Overall, sales either plateaued or declined for many major cannabis brands, and this led previous gains to dissipate.
But while Charlotte’s Web Holdings was not immune from the sector-wide downturn, it certainly appears to be recovering well as we enter the second half of 2019.
Charlotte’s Web Stock Moving Forward
There is a very bright and shining light at the end of the second quarter tunnel. And major analysts haven’t been thrown.
Further, looking at the company’s projected acreage along with its future revenue outlook, it’s clear that business has not slowed for Charlotte’s Web Holdings.
This year it will plant 862 acres of hemp in total, an increase of 187% from last year’s acreage. Further growth in the CBD market looks like this: The hemp-derived CBD market is expected to increase from $591 million in 2018 to $22 billion by 2022. That is approximately 40x growth in only four years. These figures come according to cannabis research group, the Brightfield Group.
Earlier in 2019, Charlotte’s Web Holdings added three major US retail brands to its distributor’s list. These include Walmart (NYSE:WMT), Target (NYSE:TGT), and CVS Health (NYSE:CVS). Now the company has a reach across 6,000 outlets in the US as well as its online marketplace.
With demand for CBD surging, there are few stocks as poised to take advantage as Charlotte’s Web stock. But what do you think? Did the second quarter shock you?
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