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cbdMD Shares Plummet: Buying Opportunity?

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 12/19/2025, 9:20 am ET 12/19/2025, 9:20 am ET | 5 min 5 min read
cbdMD Shares Plummet: Buying Opportunity? Thumbnail

cbdMD Inc.’s stocks have been trading down by -13.99 percent amid volatility concerns and potential regulatory changes impacting investor confidence.

  • Amidst falling shares, cbdMD reported better-than-expected financial metrics for Q3, stirring hopes among traders.

  • Key profitability ratios reveal challenges despite cbdMD showing positive gross margins and wider market potential.

  • cbdMD is ramping up innovation within the promising realm of CBD products, potentially boosting long-term appeal.

Candlestick Chart

Live Update At 09:19:21 EST: On Friday, December 19, 2025 cbdMD Inc. stock [NYSE American: YCBD] is trending down by -13.99%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of cbdMD’s Financial Position

As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” In the world of trading, it’s essential to understand that each trading session brings its own set of challenges and opportunities. While the thrill of gains may be the initial draw, it’s the lessons learned from losses that truly shape a successful trader. The market is unpredictable and fluctuates daily, and accepting these fluctuations as part of the process allows traders to continuously refine their strategies. Adapting to these changes, just as Sykes suggests, can turn even the biggest setbacks into valuable learning experiences.

cbdMD, a notable player in the CBD industry, experienced a sharp decline in share price, signifying potential market unrest. Savvy investors took notice when the Q3 financials revealed brighter spots amidst the downturn. In the earnings report, cbdMD unveiled a gross margin of 61.2%, softly cushioning the blow from falling shares.

Even so, mounting obstacles exist as seen in their profitability ratios. While the ebit margin stood at -8.1%, the company faces an uphill battle with a pretax profit margin of -85.3%, reflecting a need to tighten cost structures and enhance operational efficiency.

The buzz is not all gloomy though; their total liabilities remain manageable at $3.78M against a total capitalization of $6.31M, suggesting financial resilience. Notably, a current ratio of 1.6 puts them in a favorable liquidity position to mitigate short-term liabilities.

Intriguing Insights from Recent Earnings and Market Position

Through dissecting the recent earnings and financial metrics, some fascinating insights surface about cbdMD. Dwindling revenues lingering around $19.48M accentuate persistent challenges in revenue generation. Yet, a remarkable gross profit of $2.83M indicates that profitability, albeit stifled, is within arm’s reach should revenue streams strengthen.

Their cash flow scenario continues to show improvements, yet remains in the negative, highlighting the necessity of prudent financial decisions. Market participants are eyeing the Investing Cash Flow, marked at approximately -$1.48K, due to its implication on future scaling and strategic investments.

More Breaking News

Such trends denote an intriguing juncture for cbdMD as they strive to seize CBD market potential while grappling with inherent industry hurdles. So, should you buy into their innovative momentum or heed the cautionary earnings performances?

Unwrapping the Potential Impact of Recent News

The crux of recent speculations circles around cbdMD’s focus on product innovation. They’ve embarked on enhancing their CBD offerings, a move that doesn’t escape market buzz. Bold plans in the works foresee them pioneering unique products that could widen market capture and boost revenue streams.

At this juncture, the task before them hinges on resisting temptations to over-leverage amid exciting projects. The market landscape, still fraught with uncertainties, demands strategic foresight blending novel product strategies with fiscal prudence.

While financial pundits weigh in on cbdMD’s stock plummet, thoughts converge on long-term potential against short-term market reactions. Deciphering signs of buying chances within the crumbling stocks entails an understanding that investments in cbdMD could transition from turbulence today to triumph tomorrow.

Conclusion

As traders ponder over the dip in cbdMD shares, it raises provocative thoughts about latent opportunities in the CBD industry. While the current financial metrics tell a tale of mixed fortunes, the undercurrents suggest that cbdMD is positioning itself to leverage future growth avenues through systemic financial groundwork and an unwavering focus on innovation. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This principle might resonate with those stepping boldly into this narrative as a route to capitalizing on potential market catalysts lying in the not-so-distant horizon.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”