Should I buy Charlotte's Web stock in 2025?

What is Charlotte's Web?

How much is the Charlotte's Web stock?

The price of Charlotte's Web stock is falling this week. As of now, the stock is trading at 0.13 CAD, reflecting a 3.85% decrease over the past 24 hours. Charlotte's Web holds a market capitalization of 19.83 million CAD, with a three-month average daily trading volume of around 38,227 shares.

Investors should note that Charlotte's Web has experienced significant volatility, which may present both risks and opportunities depending on movements in the emerging CBD market.

Our full analysis on the Charlotte's Web stock

Having thoroughly reviewed Charlotte's Web Holdings Inc.'s most recent financial results and analysed the stock’s performance over the past three years, this in-depth assessment leverages not only fundamental and technical signals but also incorporates peer benchmarking and proprietary quantitative models. By synthesising multiple layers of market intelligence, the aim is to provide clarity on the evolving risk-reward profile of this emerging CBD leader. So, why might Charlotte’s Web stock once again become a strategic entry point into the cannabinoid wellness sector in 2025?

Recent Performance and Market Context

Robust Price Appreciation from Historical Lows
In the twelve months up to May 30, 2025, Charlotte’s Web Holdings Inc. (TSX: CWEB, OTCQX: CWBHF) climbed an impressive 73.33% from its 52-week low of 0.075 CAD, closing most recently at 0.13 CAD despite some intraday volatility of -3.85%. This surge in relative price is noteworthy, particularly as the stock moved within a 52-week range of 0.08–0.28 CAD, pointing to substantial upside potential from current levels. The recent price consolidation above historic support zones suggests growing market confidence.

Positive Strategic Developments
Charlotte’s Web has not been idle: the launch of the Brightside™ line in May 2025 marks an ambitious move into hemp-derived THC products, broadening its market reach beyond traditional CBD. Moreover, the progression to Phase 2 clinical trials for a novel autism therapy underscores an expanding addressable market. The company’s Q1 2025 financials further surprised to the upside—registering a year-over-year revenue increase for the first time since 2021, which is a highly bullish inflection point.

Sector Tailwinds and Regulatory Optimism
The macro backdrop for North American cannabinoid players is increasingly supportive. Evolving consumer wellness trends, gradual regulatory liberalisation, and deepening market penetration via partnerships (such as with Walmart) are improving investor sentiment. These trends also resonate in the South African context, where the CBD sector is gaining legitimacy and attention, mirroring shifts seen in Canada and the US.

Technical Analysis

Momentum Building Across Key Indicators
Technical signals for CWEB are increasingly constructive. The Relative Strength Index (RSI) stands at 50.99, reflecting a market in equilibrium—neither overbought nor oversold. More positively, the MACD registers a bullish signal (0.002), suggesting momentum is tipping towards buyers. Stochastic %K at 45.83 remains neutral but sets the stage for possible acceleration.

Moving Averages Reveal Emerging Support Structure

• The 20-day MA at 0.122 CAD and 50-day MA at 0.124 CAD both issue buy indications, providing a springboard for continued gains.
• While the medium-term 100-day (0.137 CAD) and long-term 200-day (0.161 CAD) moving averages signal caution, recent stabilisation points to a possible bottoming process, particularly attractive for value investors seeking an entry at depressed levels.

Definable Support and Resistance, Renewed Momentum

• Key technical support is observed at 0.077 CAD—meaning the stock is currently trading well above foundational pivot levels.
• First resistance stands at 0.142 CAD; a clean break could unlock a rapid test of the next resistance band.
• With a global technical read of “neutral with a mixed trend,” risk-reward appears skewed positively, especially for those targeting an entry ahead of renewed momentum.

Fundamental Analysis

Revenue Rebound, Profitability Trajectory, and Strategic Growth
Charlotte’s Web’s Q1 2025 revenue ticked up to 12.3 million USD (+1.1% year-over-year), bucking a multi-year contraction and marking the first such gain since 2021—a significant turning point. The improvement in per-share loss from -0.062 USD to -0.04 USD reflects disciplined cost management and incremental progress towards break-even status.

While full-year 2024 revenues were down 21% at 49.7 million USD, the company’s Q1 execution signals a likely inflection from retrenchment to modest growth. An adjusted gross margin of 51.1% underpins a resilient business model, while 22.6 million USD in liquidity and a healthy 31.1 million USD of working capital safeguard operational flexibility.

Attractive Valuation—Deep-Value Positioning
Charlotte’s Web is trading at a strikingly low price-to-sales (P/S) ratio of approximately 0.30 and price-to-book (P/B) of 0.68. Both metrics place CWEB at a substantial discount to both its historical range and sector medians, potentially justifying renewed institutional and retail interest. The absence of a positive earnings multiple reflects the current investment phase, but valuation multiples strongly favour a recovery thesis.

Structural Competitive Advantages
Charlotte’s Web remains the globally recognised #1 brand by CBD market share, supported by seven patents and three proprietary hemp cultivars—unique assets that reinforce barriers to entry. The company’s vertically integrated model, stringent product quality, and multi-channel distribution (including e-commerce and partnerships with tier-one retailers like Walmart) position it for sustainable growth as regulatory and consumer tailwinds compound.

Volume and Liquidity

Sustained Trading Interest Reflects Returning Confidence
Charlotte’s Web’s average daily trading volume stands at 38,227 shares—healthy for a company at this size and market cap (19.83 million CAD). Such sustained activity points to renewed institutional and retail engagement, and a float of roughly 158.62 million shares provides sufficient liquidity to allow for dynamic valuation and repositioning by sophisticated investors.

Catalysts and Positive Outlook

Product and Pipeline Innovations

• Brightside™ Launch: This new range leverages hemp-derived THC, expanding Charlotte’s Web’s product mix and opening new revenue streams in both emerging and traditional retail channels.
• Clinical Pipeline Advancement: The progression to Phase 2 clinical trials for an autism indication is a major milestone; success here could represent a step-change in both credibility and addressable market.
• Walmart Distribution Agreement: This recently secured partnership has bolstered both brand reach and core distribution—transformative not just for revenue impact, but as a signal of mainstream retail acceptance.

Favourable Sectoral and Regulatory Trends
Global recognition of CBD’s therapeutic benefits continues to increase, with North America leading a trend that is being echoed in emerging regions such as southern Africa. Regulatory clarity is incrementally improving, and Charlotte’s Web—being a Certified B Corporation—remains well-aligned with ESG priorities which are increasingly demanded by institutional allocators.

Investment Strategies

Short-Term: Technical Reversal and Volatility Plays

• With the current share price just above decisive support (0.077 CAD) and technical signals balancing at neutral/bullish levels, tactical entries targeting bounces towards the 0.142 CAD resistance may seem defensible.
• The short-term risk-reward is accentuated by pending news flow on product launches and clinical trial developments.

Medium-Term: Revenue Inflection and Catalysts

• The upward surprise in Q1 2025 revenue growth suggests that subsequent quarters could maintain positive momentum, especially if follow-on sales from Brightside™ and Walmart channels exceed expectations.
• Investors with a medium-term horizon may find now an optimal entry window, ahead of anticipated announcements tied to both retail expansion and clinical milestones.

Long-Term: Structural Growth and Brand Leadership

• For those with a longer time frame, Charlotte’s Web’s deep-value valuation, intellectual property portfolio, and status as a sector leader form the basis for a credible turnaround thesis.
• As regulatory barriers recede and end-market adoption accelerates, the stock could be entering a major bullish phase analogous to early-stage sector leaders across emerging wellness categories globally.

Is it the Right Time to Buy Charlotte’s Web?

To summarise, Charlotte’s Web demonstrates:

• A reaffirmed leadership position in a high-growth sector;
• Signs of financial stabilisation, with the first revenue gains since 2021 and a significant turnaround in per-share losses;
• Attractive deep-value multiples vis-à-vis peers and its own historical averages;
• Multiple credible catalysts ahead—including product launches, mainstream retail partnerships, and potentially paradigm-shifting clinical data;
• Constructive trading volume signalling market confidence, and technical price action suggesting the building of a durable base.

In view of these developments, Charlotte’s Web appears to represent an excellent opportunity for investors seeking exposure to the maturing cannabinoid wellness industry. While risks remain—most importantly regulatory shifts and competitive intensity—the alignment of technical, fundamental, and strategic drivers suggests the stock may be entering a new bullish phase. For South African investors who prize innovation, early-positioning in emerging global wellness trends, and the potential for outsized gains from a low base, Charlotte’s Web is worthy of renewed attention.

With clear momentum building, both on the ground and in the market, CWEB stock stands out as a compelling entry point into one of the next frontiers of the wellness economy.

How to buy Charlotte's Web stock in South Africa?

Buying Charlotte’s Web Holdings (CWEB) stock online is now straightforward and secure for South African investors, thanks to global access via regulated trading platforms. You can either purchase the actual shares (spot buying) or trade on price movements using Contracts for Difference (CFDs). Spot buying gives you direct ownership, while CFDs provide flexibility and leverage without owning the shares. Each method suits different investor needs, and both can be accessed via reputable brokers—see our detailed broker comparison further down the page for full details.

Cash buying

With cash buying, you purchase actual Charlotte’s Web shares, making you a shareholder with voting rights and dividend eligibility (though Charlotte’s Web currently pays no dividend). Most South African brokers charge a fixed commission per order—typically around R100–R150, plus potential small FX fees for foreign markets.

Example

Suppose the Charlotte’s Web share price is 0.13 CAD (about R1.80, based on an exchange rate of 1 CAD ≈ R13.80). With a R19,000 investment (roughly $1,000), you can buy around 7300 shares, factoring in a brokerage fee of about R130.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth approximately R20,900.
Result: That’s a +R1,900 gross gain, or +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Charlotte’s Web share price movements without actually owning the shares. It’s popular for short-term strategies and offers access to leverage. With CFDs, fees include the spread (difference between buy/sell price) and possible overnight financing costs if you hold positions for more than a day.

Example

You open a CFD position on Charlotte’s Web shares with a R19,000 margin and 5x leverage, giving a market exposure of R95,000.
✔️ Gain scenario:
If the stock climbs by 8%, your position yields a profit of 8% × 5 = 40%.
Result: +R7,600 gain on a R19,000 margin (excluding fees).

Final advice

Before you invest, always compare brokers’ fees, platform features and market access, as these can significantly affect your returns—our detailed broker comparator is available below for your convenience. The right choice depends on your investment strategy and risk appetite: spot buying suits long-term investors, while CFDs are better for more active, risk-seeking traders. Take time to match your approach with your financial goals and preferred style of investing.

Our 7 tips for buying Charlotte's Web stock

The latest news about Charlotte's Web

Charlotte's Web posts first year-on-year quarterly revenue growth since 2021, marking a notable turnaround. In Q1 2025, Charlotte's Web reported revenues of 12.3 million USD, reflecting a 1.1% increase compared to the same period in 2024 and signaling a key inflection point, as it is the first quarter showing year-on-year growth in four years. Alongside this, the company narrowed its net loss per share to 0.04 USD, an improvement over the 0.062 USD loss seen the year prior, and improved gross margins to 6.23 million USD. These results have led to a cautiously optimistic market sentiment, with investors watching for signs of sustained recovery—a development that may resonate with South African market participants interested in CBD sector rebounds and portfolio diversification.

Launch of the Brightside™ hemp-derived THC product line signals innovation and potential new growth channels. In May 2025, the introduction of the Brightside™ brand marked an important strategic move for Charlotte's Web, expanding its product offering to include innovative hemp-derived THC wellness goods. As an industry leader, such product innovation strengthens differentiation and could broaden the company’s addressable market, a fact with particular relevance for South African stakeholders interested in wellness innovations, emerging global trends, and regulatory progress in cannabinoid-based products—an area also experiencing increased attention in South Africa’s own legislative and consumer markets.

Strategic Walmart distribution partnership enhances retail reach and brand visibility in North American markets. Charlotte's Web's 2024 distribution agreement with Walmart is a major catalyst, granting access to one of the world’s largest retail networks. This partnership not only bolsters sales channels and improves resilience against sector volatility, but also reinforces the brand’s global reputation. For South African investors and analysts, Walmart’s expansion in Africa and its established supply chain expertise present a successful case study. Should Charlotte's Web pursue international expansion or establish indirect links with local distributors, this proven retail strategy could inform local sector developments.

Ongoing Phase 2 clinical trials in autism treatment represent a promising therapeutic frontier for Charlotte's Web. Progressing to Phase 2 of clinical trials targeting autism spectrum disorder, Charlotte's Web underscores its commitment to therapeutic research and medical-grade CBD applications. Clinical progress in this area generates significant positive sentiment and highlights the company’s innovation pipeline. As South Africa continues to develop its own medical cannabis regulations and research ecosystem, Charlotte's Web’s advancements may influence regional regulatory dialogues, inform investment in biotech CBD, and contribute scientifically to the broader African market.

Technical analysis points to mixed signals but shows upward momentum with MA and MACD buy indicators. Recent technical indicators present a nuanced outlook: both the 20-day and 50-day moving averages, as well as the MACD, currently flash buy signals, while the RSI remains neutral at 51 and long-term trends are still weighed by sell signals on the 100 and 200-day averages. This mix suggests a cautious yet positive short-term momentum in the stock, which could appeal to South African traders and funds seeking exposure to global wellness equities showing early signs of technical recovery, especially in a diversifying portfolio context.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.