Shares of Charlotte's Web Holdings (CWBHF -15.14%) 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.

However, there are some reasons to at least consider buying this stock. Charlotte's Web has streamlined its operations under the leadership of new CEO Jacques Tortoroli. It should have greater international opportunities in Canada, Israel, and the United Kingdom.

Cannabis plants in an indoor facility with a person looking at them.

Image source: Getty Images.

In addition, there are two wild cards that hold the potential to be huge catalysts for the stock. It's possible that comprehensive CBD regulations in the U.S. could be finalized after what has been a long wait. If those regulations are favorable to the CBD industry, Charlotte's Web's shares would almost certainly take off.

The company also has the option to buy the Stanley Brothers' cannabis business if federal marijuana legalization efforts bear fruit. Legalization or decriminalization of marijuana at the federal level could therefore open up a big growth opportunity for Charlotte's Web.

But is the stock a buy right now? Not yet, in my opinion. I think it would be best to watch Charlotte's Web from the sidelines until there's a more tangible reason to expect stronger growth.