CWEB Stock Down 10%, CEO “Cautiously Optimistic”

CWEB Stock

CWEB stock continued to slide today, but the CEO of Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) remains “cautiously optimistic” on improved FDA regulations.

It continues a poor week for CWEB stock, which dropped as much as 15.5% on Wednesday after the company posted underwhelming Q2 results. Despite reporting a revenue increase of 45% year-on-year and a 15% increase from the previous quarter to $25 million USD, this fell short of analyst estimates of $26.3 million USD.

Good News for CWEB Stock?

In the company’s results release, CEO Deanie Elsner said she expected to see a framework for regulations of CBD products at some point this year. This could be good news for CWEB stock, which is well-positioned as a market leader for CBD-based products. The CBD market in the US is going from strength to strength following the passage of the 2018 Farm Bill, which saw sales of CBD products increase by nearly 500% this year.

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“While the farm bill unlocked the door for category availability, the FDA now has the opportunity to expand availability of hemp CBD products across more distribution points to benefit more consumers,” said Ms. Elsner in a conference call on Wednesday.

>> Harvest Health Stock Falls Following Q2 Results: What Next?

What Next for CWEB Stock?

It’s important to note that the company’s Q2 results do not include its recent deal with grocery chain Kroger (NYSE:KR). This deal will see Charlotte’s Web products on the shelves of 1,350 stores in 22 states and speculators will be hoping this will give CWEB stock a boost going forward. Added to this, the company has tripled its planted hemp acreage in anticipation for a period of substantial growth once the FDA provides further clarity on CBD regulations.

Looking ahead in the industry, Charlotte’s Web Holdings expects to increase revenue at a faster rate than its operating costs in the second half of the year, which the company hopes will equal better profits. As is always the case with cannabis stocks, only time will tell, but perhaps this week’s sell-off could mean a great opportunity for CWEB stock.

>> Read More Charlotte’s Web News

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