CWBHF - Charlotte's Web Stock Sank Today: Is It a Buy Now?
Shares of Charlotte's Web Holdings (OTC: CWBHF) sank by 11.2% on Thursday, as investors clearly weren't happy with the CBD products company's fourth-quarter update. But is the stock a buy on the dip?
There's no question that things aren't going in the right direction for Charlotte's Web right now. The company's revenue fell 7.8% year over year in Q4 to $24.8 million, well below analysts' consensus estimate. Charlotte's Web posted a net loss of $0.86 per share -- far worse than the $0.10 net loss per share in the prior-year period and nowhere close to the loss of just $0.05 per share expected by analysts.
The details behind those numbers weren't encouraging, either. Direct-to-consumer net revenue slid by 12.1% year over year. Business-to-business revenue was flat, but that wasn't a win for Charlotte's Web considering that the passage of Assembly Bill 45 in California enabled the company to add more than 1,000 retail locations to its distribution network in the fourth quarter.
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Charlotte's Web Stock Sank Today: Is It a Buy Now?