OLPX:NASDAQ Class Action Lawsuit (OLPX) was filed on November 17, 2022 on behalf of the shareholders.
On September 29, 2022, a Piper Sandler analyst downgraded Olaplex to Neutral from Overweight, stating that her work revealed that “competition and misinformation pose growing risks to the company.”
According to the analyst, calls to 150 hair salons across the U.S. suggest Olaplex could be losing a mid-to-high single digit percentage of share in salons, and other hair repair brands like K18 are rising in turn.
Finally, the analyst indicated that she anticipated investments in marketing and education were needed to offset the headwinds and that “little room for valuation upside given the risks at play.”
On this news, Olaplex’s stock price fell $1.33 per share, or 12.15%, to close at $9.62 per share on September 29, 2022.
Then, on October 18, 2022, Olaplex issued a press release in which “the Company revised its guidance for the 2022 fiscal year”.
Olaplex said it now expects fiscal year 2022 revenue between $704 million and $711 million, significantly down from its prior guidance range of $796 million to $826M.
In addressing the revised guidance, the press release stated, in relevant part: …
On this news, Olaplex’s stock price fell $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.