What Happened?
Shares of skincare company BeautyHealth (NASDAQ:SKIN) fell 7.8% in the morning session after a key competitor, Waldencast, announced it received FDA approval for its Obagi saypha MagIQ injectable hyaluronic acid gel.
This approval marks Waldencast's entry into the U.S. dermal filler market, a move expected to double its Obagi Medical brand's total addressable market to approximately $4.2 billion by 2029. The new product, planned for a 2026 launch, introduces a significant competitive threat for existing players like BeautyHealth. Compounding the pressure, broader market headwinds may also be weighing on investor sentiment, with some beauty-sector reports pointing to an "uncertain US market." Additionally, recent news has highlighted the health risks of cosmetic injections from untrained practitioners, adding to concerns around the industry.
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 BeautyHealth? Access our full analysis report here, it’s free.
What Is The Market Telling Us
BeautyHealth’s shares are extremely volatile and have had 67 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 14.8% after a broader rally among beauty-related stocks driven by positive sentiment for the sector. The move appears linked to a wave of investor demand for makers of beauty devices, fueled by growing global enthusiasm for trends like K-beauty. For instance, some South Korean beauty device makers saw significant stock surges on Monday.
Adding to the positive industry outlook are reports highlighting strong consumer spending habits. The beauty and personal care category is among the top performers in the rapidly growing e-commerce market. Furthermore, data shows younger consumers, specifically Gen Z, are major drivers of online health and beauty purchases, suggesting a strong and growing customer base for the industry.
BeautyHealth is up 38.5% since the beginning of the year, and at $2.23 per share, it is trading close to its 52-week high of $2.44 from September 2025.
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