What Happened?

Shares of skincare company BeautyHealth (NASDAQ: SKIN) fell 7.4% in the afternoon session after investor concern grew ahead of its upcoming third-quarter 2025 earnings report, following the release of negative analyst estimates. Analysts projected that the company's revenue would fall by 13.29% compared to the previous year, landing at $68.33 million. Furthermore, estimates pointed to a loss per share of $0.083. These forecasts suggested potential financial weakness for the company, which likely led to the negative reaction from investors before the official results were announced.

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What Is The Market Telling Us

BeautyHealth’s shares are extremely volatile and have had 69 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 7 days ago when the stock gained 9.4% on the news that optimism surged over a potential trade truce between the U.S. and China. Reports of progress in trade negotiations ahead of a scheduled meeting between the two nations' presidents fueled investor confidence. An agreement would likely ease trade tensions and reduce or remove tariffs that have created economic uncertainty and higher costs for many multinational corporations. Also, optimism improved on expectations that the Federal Reserve will cut interest rates later in the week, especially after recent data showed inflation wasn't heating up as much as expected. Simply put, good news on trade, and the promise of lower borrowing costs created a powerful rally.

BeautyHealth is down 15.8% since the beginning of the year, and at $1.36 per share, it is trading 48.5% below its 52-week high of $2.63 from September 2025.

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