Shares of Charlotte's Web Holdings (OTC: CWBHF) were jumping 6.6% as of 2:55 p.m. EDT on Monday. The CBD products company didn't announce any news. Instead, the nice gain stemmed from the overall stock market rise sparked by good news for aircraft maker Boeing.
Most stocks tend to rise when the overall stock market goes up. However, it's still important to evaluate the prospects for individual stocks before buying them.
In Charlotte's Web's case, those prospects remain uncertain to some extent. The company's growth won't be as great as investors hope until the U.S. Food and Drug Administration (FDA) finalizes regulations on CBD dietary supplements. It's not known how long it will be before the agency has those regulations ready or what its decision might be.
Meanwhile, Charlotte's Web hasn't given investors much to cheer for so far this year. Its acquisition of Canadian CBD products company Abacus Health didn't win major kudos. Charlotte's Web also recently issued a combination of common stock and warrants, a move that diluted the value of its existing shares.
Cannabis stocks are likely to remain highly volatile, especially those (like Charlotte's Web) that focus on the U.S. CBD market. The main thing for investors to look forward to with the company now is its annual general and special meeting of shareholders, scheduled for Sept. 3, 2020.