Why Did ODD Shares Tumble More Than 50% Today?

• Jefferies downgraded the company’s shares to ‘Hold’ from ‘Buy,’ and slashed its price target by about 72% to $18. 
• The company said that a disruption in its account with its largest advertising partner, driven by algorithm changes, led to lower-quality auctions at abnormally high costs. 
• Oddity posted a 24% year-on-year growth in Q4 revenue of $153 million, beating Wall Street expectations of $151.08 million.

Shares of Oddity Tech Ltd. (ODD) plummeted more than 50% on Wednesday after the company forecast a significant decline in revenue for the upcoming quarter.

Following the results, Jefferies analyst Brian Tanquilut downgraded the Israeli beauty and technology company’s shares to ‘Hold’ from ‘Buy,’ and slashed its price target by about 72% to $18 from a previous target of $64.

While Oddity did not provide guidance in its release, the company said in its earnings call that it expected a decline of about 30% in revenues for the first-quarter (Q1) of 2026, with a further drop anticipated in Q2.

Analyst Rationale

Jefferies’ Tanquilut said that the downgrade and lowered price target reflect the firm’s belief that ODD stock will experience near-term pressure and "trade sideways at trough levels" until management can prove its ability to deliver consistent earnings beats, according to TheFly.

The analyst said that the company’s fourth-quarter (Q4) results were overshadowed by the expected decline in revenues and guidance suspension, adding that the lack of visibility limited upside to the stock.

Earnings Snapshot

Oddity posted a 24% year-on-year growth in Q4 revenue of $153 million, beating Wall Street expectations of $151.08 million, according to data from Fiscal.ai. The company declared earnings per share of $0.20, significantly higher than analysts’ projections of $0.14.

However, the company said that a disruption in its account with its largest advertising partner, driven by algorithm changes, led to lower-quality auctions at abnormally high costs.

“This is resulting in significant increases in new user acquisition costs that are not correlated with the market or our historical experience. We believe we recently identified the root cause of the problem and have already implemented significant actions that we hope will drive meaningful progress in Q2 and return our acquisition costs to normal levels in Q3 or Q4,” said CEO and co-founder Oran Holtzman.

On the earnings call, Holtzman reiterated that the company was hoping for a “material improvement” in the second half of 2026.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ODD shares jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours. Meanwhile, message volumes jumped to ‘extremely high’ from ‘high’ levels. The stock was also among the most-trending on Stocktwits at the time of writing.

Shares of ODD have declined more than 67% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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