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cbdMD Stock Faces New Challenges with Recent Market Developments

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/21/2025, 8:13 am ET 12/21/2025, 8:13 am ET | 5 min 5 min read
cbdMD Stock Faces New Challenges with Recent Market Developments Thumbnail

cbdMD Inc. faces market challenges with stocks down -20.72%, amid concerns about operational shifts impacting growth prospects.

Healthcare industry expert:

Analyst sentiment – negative

cbdMD (YCBD) is presently struggling with its market position, as indicated by key financial metrics. The company has a negative EBIT margin (-8.1%), reflecting operational challenges in turning revenue into profit. The overall revenue trend is bleak, with declines over the past three and five years (-20.13% and -13.69%, respectively). Gross margin stands relatively healthy at 61.2%, but this isn’t translating into profitability, evident from a pre-tax profit margin of -85.3%. While total liabilities to equity ratio is low at 0.16, indicating manageable leverage, the poor return on equity (-84.76%) and return on assets (-63.1%) highlight inefficient asset use and capital deployment.

Analyzing YCBD’s price patterns, the weekly charts reveal volatility with abrupt upward and downward movements—recent candles illustrate prominent shifts. The current bearish tone was established as prices slipped from a high of 2.32 to a low of 1.5302. Despite a brief rally to 2.28, resistance near 2.30 is evident, with subsequent retraces indicating selling pressure. Short-term trading strategy advises selling on rallies up to resistance and targeting supports near 1.50. The unstable volume surge aligns with bearish sentiment as selling pressure seems to dominate.

Recent corporate developments provide insight into YCBD’s strategic efforts and market perception. The announcement of a $2.25M Series C convertible preferred stock placement should inject liquidity, possibly aiding operational stability. However, insider sales worth $1,276,842, coupled with a 14% pre-earnings release stock drop, exhibit weakened confidence and pressure on shares. Relative to the Healthcare and Pharmaceuticals sector, YCBD’s performance remains subdued. While the cash influx might momentarily stabilize operations, pervasive challenges could hinder long-term growth. Immediate resistance is observed at 2.30, with a psychological support level at 1.50—performance around these levels will be crucial to monitor. Cautious outlook persists until further concrete improvements.

Candlestick Chart

Weekly Update Dec 15 – Dec 19, 2025: On Sunday, December 21, 2025 cbdMD Inc. stock [NYSE American: YCBD] is trending down by -20.72%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The recent pricing trend for cbdMD reveals volatility that may concern investors, given the 14% decline in share value. Analyzing key financial metrics for recent periods could provide insights into market sentiment. Observing YCBD’s recent trade movement, a significant shift from a high of $2.32 on December 17, 2025, to a closing price of $1.53 on December 19, 2025, underscores investor anxiety ahead of expected earnings.

More Breaking News

At the heart of any thorough financial evaluation lies the comprehensive review of financial metrics and ratios. cbdMD’s profitability, as evident from an operating revenue of approximately $4.7M, exhibits strain, denoting a negative EBITDA and net income overall. It’s notable that the company’s gross margins stand at 61.2%, impressive compared to many within its market space, yet undercut by heavy losses witnessed by net profit margins descending into the negative territory at -25.5%. The ventures into preferred stock issuance delineate a company grappling with leveraging capital amidst a challenging fiscal climate.

Conclusion

cbdMD finds itself at a crossroads; stock price dynamics exhibit undeniable pressure. The juxtaposition of a private placement exercise followed by an insider’s divestment of shares raises questions about its forward momentum. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” With the fourth quarter earnings looming, navigating these choppy waters effectively will demand exemplary fiscal stewardship and adaptive strategic insights. Traders will need to discern whether recent capital infusions and potential directional pivots adequately reconcile with the yawning chasm evidenced within the latest financial exposition. Industry observers must remain vigilant for upcoming disclosures that may provide clarity on cbdMD’s evolving financial narrative and market strategy moving forward.

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.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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”