What Happened?

Shares of hair care company Olaplex (NASDAQ: OLPX) jumped 8.4% in the afternoon session after positive sentiment spread through the beauty sector following a bullish analyst note on the industry's outlook. 

The optimism stemmed from a Bank of America report that forecasted a stronger year for the beauty market in 2026. The bank expected industry revenue growth to accelerate to 4.9%, which was double the growth rate of 2025. This upbeat view was based on an anticipated recovery in the Chinese market and continued supportive trends in the U.S. While the report named a competitor as a top pick, its positive projection for the entire sector likely boosted investor confidence in other beauty-related companies like Olaplex.

The shares closed the day at $1.44, up 9.5% from previous close.

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What Is The Market Telling Us

Olaplex’s shares are extremely volatile and have had 41 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 8 days ago when the stock dropped 3.2% on the news that the stock appeared to give back some of its recent gains following a strong prior performance. 

The move followed a notable run-up. On the last trading day, the stock price gained almost 6%, and over the previous two weeks, it had risen more than 21%. With no major company news released to drive the price, the decline seemed to be a technical correction or investors taking profits after the recent surge. This view was supported by a generally neutral sentiment based on technical indicators, which suggested a lack of strong directional conviction from traders.

Olaplex is down 15.1% since the beginning of the year, and at $1.44 per share, it is trading 31.3% below its 52-week high of $2.09 from December 2024. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $58.57.

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