Why Olaplex (OLPX) Stock Is Nosediving
What Happened: Shares of hair care company Olaplex (NASDAQ:OLPX) fell 13% in the pre-market session after the company reported fourth-quarter results and provided full-year revenue and EBITDA guidance, which missed analysts’ expectations.
On the other hand, despite dropping year on year, its revenue outperformed Wall Street’s estimates as its Direct-to-Consumer segment posted strong results. Overall, the results could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Olaplex? Find out by reading the original article on StockStory.
What is the market telling us: Olaplex’s shares are quite volatile and over the last year have had 44 moves greater than 5%. But moves this big are very rare even for Olaplex and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Olaplex is down 28.9% since the beginning of the year, and at $1.78 per share it is trading 63.9% below its 52-week high of $4.92 from February 2023. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $72.58.
