ODDITY Under Investigation for Possible Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ODD?
Source: Newsfilter
- Investigation Background: Ademi LLP is investigating ODDITY for possible securities fraud due to potentially inaccurate statements regarding its financial statements, business operations, and prospects, which could undermine investor confidence.
- Control System Deficiencies: The investigation focuses on whether ODDITY had adequate controls and systems to track strategies and activities of a key ad partner, which may have diverted its campaigns into 'lower quality auctions,' leading to increased user acquisition costs.
- Rising User Acquisition Costs: The shift in advertising strategy could result in significantly higher costs for acquiring new users, directly impacting the company's profitability and competitive position in the market.
- Potential Legal Consequences: This investigation may expose ODDITY to legal actions and financial liabilities, further heightening investor concerns about its future performance and affecting its stock price.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ODD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ODD
Wall Street analysts forecast ODD stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 29.020
Low
49.00
Averages
66.63
High
80.00
Current: 29.020
Low
49.00
Averages
66.63
High
80.00
About ODD
Oddity Tech Ltd is an Israel-based company engaged in the beauty and wellness sector on the molecular level. The Company is operating a tech platform under its own brand on the Internet, whose purpose is to support a portfolio of brands and services connected to the beauty and wellness market and to develop products customized to the wishes of the Company's clients. The Company is using algorithms and machine learning models to match a corresponding physical product. Advanced biological models and machine learning-based tools are used to find new molecules for beauty and wellness purposes. The Company is active in research and development in areas such as data science, machine learning, and computer vision to enhance its products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oddity Tech Shares Plunge 49.9% Despite Earnings Beat
- Earnings Beat: Oddity Tech reported a non-GAAP profit of $0.20 per share on revenues of $152.73 million in Q4, exceeding analyst expectations by $0.06, with sales up 23.5% year-over-year, indicating strong market competitiveness.
- Stock Price Crash: Despite a bullish market backdrop with the S&P 500 up 0.8% and Nasdaq up 1.2%, Oddity's shares plummeted 49.9% during the trading session, reflecting investor concerns about future prospects.
- Pessimistic Guidance: The company anticipates a roughly 30% year-over-year decline in sales for the current quarter, attributed to higher-than-expected acquisition costs and an algorithmic mismatch with a major advertising partner, triggering a strong market reaction.
- Investor Confidence Shaken: Although management indicated that performance is expected to improve significantly later in the year, investors remain skeptical about the company's future performance, leading to substantial stock price volatility.
See More
Oddity Tech Stock Hits All-Time Low as Company Anticipates 30% Drop in Q1 Revenue, Down 53% Overall
Company Performance: ODDITY's shares have fallen to a record low following disappointing financial results.
Revenue Decline: The company's Q1 revenue is expected to decline by approximately 30%, contributing to the drop in share value.
See More
ODDITY Under Investigation for Possible Securities Fraud
- Investigation Background: Ademi LLP is investigating ODDITY for possible securities fraud due to potentially inaccurate statements regarding its financial statements, business operations, and prospects, which could undermine investor confidence.
- Control System Deficiencies: The investigation focuses on whether ODDITY had adequate controls and systems to track strategies and activities of a key ad partner, which may have diverted its campaigns into 'lower quality auctions,' leading to increased user acquisition costs.
- Rising User Acquisition Costs: The shift in advertising strategy could result in significantly higher costs for acquiring new users, directly impacting the company's profitability and competitive position in the market.
- Potential Legal Consequences: This investigation may expose ODDITY to legal actions and financial liabilities, further heightening investor concerns about its future performance and affecting its stock price.
See More
ODDITY Under Investigation for Securities Fraud Claims
- Investigation Background: Ademi LLP is investigating ODDITY (NASDAQ: ODD) for potential securities fraud due to possibly inaccurate statements regarding its financial statements, business operations, and prospects, which may mislead investors about its true condition.
- Control System Deficiencies: The investigation focuses on whether ODDITY had adequate controls and systems to track the strategies and activities of a key ad partner, which may have diverted its campaigns into 'lower quality auctions' at abnormally high costs.
- Rising User Acquisition Costs: As a result of these issues, ODDITY has seen a significant increase in the cost of acquiring new users, which could negatively impact the company's financial health and future growth prospects, thereby affecting investor confidence.
- Potential Legal Consequences: This investigation could lead to lawsuits and liability for ODDITY, further exacerbating market concerns regarding its governance structure and financial transparency, potentially impacting its stock performance.
See More
U.S. Stocks Rise as TJX Reports Strong Earnings Beat
- Market Performance: U.S. stocks broadly rose on Wednesday, with the Nasdaq Composite gaining over 250 points, indicating improved market sentiment, particularly as technology shares increased by 1.6%, reflecting heightened investor confidence in the tech sector.
- TJX Earnings Report: TJX Companies reported fourth-quarter earnings of $1.43 per share, surpassing analyst expectations of $1.39, with sales reaching $17.743 billion, also exceeding the consensus estimate of $17.370 billion, showcasing the company's robust performance in retail.
- Future Outlook: Despite TJX's FY2027 GAAP EPS guidance of $4.93 to $5.02 falling short of the market estimate of $5.17, the strong quarterly results may still attract investor interest, reflecting the company's resilience in an uncertain market environment.
- Economic Data: The volume of mortgage applications in the U.S. increased by 0.4% in the third week of February, although this was lower than the previous week's 2.8% gain, indicating a gradual recovery in the housing market that could positively impact future economic growth.
See More
Oddity Tech Downgraded and Price Target Cut by Jefferies
- Downgrade Announcement: Jefferies downgraded Oddity Tech's shares from ‘Buy’ to ‘Hold’ and slashed its price target by approximately 72% to $18, reflecting expectations of near-term stock pressure.
- Earnings Performance: Oddity reported a 24% year-on-year revenue growth in Q4, totaling $153 million, surpassing Wall Street's expectations of $151.08 million; however, the stock plummeted due to pessimistic revenue forecasts.
- Advertising Partnership Issues: The company cited disruptions with its largest advertising partner, where algorithm changes led to lower-quality auctions and significantly increased user acquisition costs, impacting profitability.
- Market Sentiment Shift: Despite a more than 67% decline in stock value over the past year, retail sentiment on Stocktwits shifted from ‘bullish’ to ‘extremely bullish’, indicating investor optimism about potential future improvements.
See More
Oddity Tech Shares Plunge 49.9% Despite Earnings Beat
- Earnings Beat: Oddity Tech reported a non-GAAP profit of $0.20 per share on revenues of $152.73 million in Q4, exceeding analyst expectations by $0.06, with sales up 23.5% year-over-year, indicating strong market competitiveness.
- Stock Price Crash: Despite a bullish market backdrop with the S&P 500 up 0.8% and Nasdaq up 1.2%, Oddity's shares plummeted 49.9% during the trading session, reflecting investor concerns about future prospects.
- Pessimistic Guidance: The company anticipates a roughly 30% year-over-year decline in sales for the current quarter, attributed to higher-than-expected acquisition costs and an algorithmic mismatch with a major advertising partner, triggering a strong market reaction.
- Investor Confidence Shaken: Although management indicated that performance is expected to improve significantly later in the year, investors remain skeptical about the company's future performance, leading to substantial stock price volatility.
See More
Oddity Tech Stock Hits All-Time Low as Company Anticipates 30% Drop in Q1 Revenue, Down 53% Overall
Company Performance: ODDITY's shares have fallen to a record low following disappointing financial results.
Revenue Decline: The company's Q1 revenue is expected to decline by approximately 30%, contributing to the drop in share value.
See More
ODDITY Under Investigation for Possible Securities Fraud
- Investigation Background: Ademi LLP is investigating ODDITY for possible securities fraud due to potentially inaccurate statements regarding its financial statements, business operations, and prospects, which could undermine investor confidence.
- Control System Deficiencies: The investigation focuses on whether ODDITY had adequate controls and systems to track strategies and activities of a key ad partner, which may have diverted its campaigns into 'lower quality auctions,' leading to increased user acquisition costs.
- Rising User Acquisition Costs: The shift in advertising strategy could result in significantly higher costs for acquiring new users, directly impacting the company's profitability and competitive position in the market.
- Potential Legal Consequences: This investigation may expose ODDITY to legal actions and financial liabilities, further heightening investor concerns about its future performance and affecting its stock price.
See More
ODDITY Under Investigation for Securities Fraud Claims
- Investigation Background: Ademi LLP is investigating ODDITY (NASDAQ: ODD) for potential securities fraud due to possibly inaccurate statements regarding its financial statements, business operations, and prospects, which may mislead investors about its true condition.
- Control System Deficiencies: The investigation focuses on whether ODDITY had adequate controls and systems to track the strategies and activities of a key ad partner, which may have diverted its campaigns into 'lower quality auctions' at abnormally high costs.
- Rising User Acquisition Costs: As a result of these issues, ODDITY has seen a significant increase in the cost of acquiring new users, which could negatively impact the company's financial health and future growth prospects, thereby affecting investor confidence.
- Potential Legal Consequences: This investigation could lead to lawsuits and liability for ODDITY, further exacerbating market concerns regarding its governance structure and financial transparency, potentially impacting its stock performance.
See More
U.S. Stocks Rise as TJX Reports Strong Earnings Beat
- Market Performance: U.S. stocks broadly rose on Wednesday, with the Nasdaq Composite gaining over 250 points, indicating improved market sentiment, particularly as technology shares increased by 1.6%, reflecting heightened investor confidence in the tech sector.
- TJX Earnings Report: TJX Companies reported fourth-quarter earnings of $1.43 per share, surpassing analyst expectations of $1.39, with sales reaching $17.743 billion, also exceeding the consensus estimate of $17.370 billion, showcasing the company's robust performance in retail.
- Future Outlook: Despite TJX's FY2027 GAAP EPS guidance of $4.93 to $5.02 falling short of the market estimate of $5.17, the strong quarterly results may still attract investor interest, reflecting the company's resilience in an uncertain market environment.
- Economic Data: The volume of mortgage applications in the U.S. increased by 0.4% in the third week of February, although this was lower than the previous week's 2.8% gain, indicating a gradual recovery in the housing market that could positively impact future economic growth.
See More
Oddity Tech Downgraded and Price Target Cut by Jefferies
- Downgrade Announcement: Jefferies downgraded Oddity Tech's shares from ‘Buy’ to ‘Hold’ and slashed its price target by approximately 72% to $18, reflecting expectations of near-term stock pressure.
- Earnings Performance: Oddity reported a 24% year-on-year revenue growth in Q4, totaling $153 million, surpassing Wall Street's expectations of $151.08 million; however, the stock plummeted due to pessimistic revenue forecasts.
- Advertising Partnership Issues: The company cited disruptions with its largest advertising partner, where algorithm changes led to lower-quality auctions and significantly increased user acquisition costs, impacting profitability.
- Market Sentiment Shift: Despite a more than 67% decline in stock value over the past year, retail sentiment on Stocktwits shifted from ‘bullish’ to ‘extremely bullish’, indicating investor optimism about potential future improvements.
See More
