ODDITY Tech shares tumble nearly 50% after warning of sharp Q1 revenue decline tied to advertising disruption

ODDITY Tech Ltd. (ODD) is down 49.2% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears driven by a surprisingly weak near-term outlook: management said first-quarter 2026 revenue is expected to fall roughly 30% year over year due to a sudden spike in customer acquisition costs. Investors also seemed to react negatively to reduced visibility while the company works through an advertising-partner disruption and delays issuing full-year 2026 guidance.

Details:

The company said an algorithm-driven disruption at its largest advertising partner diverted campaigns into lower-quality ad auctions at unusually high costs, pressuring marketing efficiency and new customer acquisition economics.

Management indicated first-quarter 2026 revenue is expected to decline about 30% year over year and suggested acquisition costs may not normalize until the second half of 2026.

Despite reporting record full-year 2025 results (including revenue growth versus the prior year), the near-term demand capture appears constrained by elevated marketing costs rather than product or repeat-customer weakness.

A major Wall Street firm downgraded the stock and sharply cut its price target following the disclosure, adding to downside pressure as investors reassessed expectations.

Sources:

ODDITY Tech (press release via GlobeNewswire), RTTNews, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$ODD Hedge Fund Activity

We have seen 104 institutional investors add shares of $ODD stock to their portfolio, and 138 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

JANUS HENDERSON GROUP PLC added 1,296,551 shares (+115.0%) to their portfolio in Q4 2025, for an estimated $52,095,419
BAILLIE GIFFORD & CO added 1,076,921 shares (+17.8%) to their portfolio in Q4 2025, for an estimated $43,270,685
D. E. SHAW & CO., INC. removed 1,066,354 shares (-59.5%) from their portfolio in Q4 2025, for an estimated $42,846,103
DRIEHAUS CAPITAL MANAGEMENT LLC removed 663,610 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $26,663,849
FUNDSMITH LLP added 657,211 shares (+46.4%) to their portfolio in Q4 2025, for an estimated $26,406,737
CAPITAL INTERNATIONAL INVESTORS removed 596,306 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $37,149,863
MORGAN STANLEY added 525,481 shares (+13.9%) to their portfolio in Q4 2025, for an estimated $21,113,826

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$ODD Analyst Ratings

Wall Street analysts have issued reports on $ODD in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

JP Morgan issued a "Overweight" rating on 11/21/2025
Needham issued a "Buy" rating on 11/20/2025
Keybanc issued a "Overweight" rating on 10/08/2025
Jefferies issued a "Buy" rating on 09/24/2025

To track analyst ratings and price targets for $ODD, check out Quiver Quantitative's $ODD forecast page.

$ODD Price Targets

Multiple analysts have issued price targets for $ODD recently. We have seen 8 analysts offer price targets for $ODD in the last 6 months, with a median target of $49.5.

Here are some recent targets:

Brian Tanquilut from Jefferies set a target price of $18.0 on 02/25/2026
Youssef Squali from Truist Securities set a target price of $18.0 on 02/25/2026
Scott Schoenhaus from Keybanc set a target price of $50.0 on 01/08/2026
Cory Carpenter from JP Morgan set a target price of $59.0 on 12/12/2025
Dara Mohsenian from Morgan Stanley set a target price of $49.0 on 11/21/2025
Lauren Lieberman from Barclays set a target price of $46.0 on 11/21/2025
Ryan MacDonald from Needham set a target price of $72.0 on 11/20/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.