ODD Stock Records Worst Day Ever: Truist Slashes Target By 78%, Wall Street Calls Oddity 'Difficult To Forecast'

An algorithm change at an ad partner has impacted Oddity’s results, with the company now expecting about 30% fall in revenues for the first-quarter.

• Truist Securities slashed its price target on Oddity by 78% to $18 and downgraded the shares to ‘Hold’ from ‘Buy,’ according to TheFly.
• Needham said the downgrade on the shares will remain until the firm has more confidence that Oddity has found a solution and can return to profitable growth.
• The firm said that, given the uncertainty about whether and when Oddity can resolve this issue, the company's growth and margin trajectory are "difficult to forecast.”

Oddity Tech stock closed 49% lower on Wednesday, recording its worst day ever, as Wall Street became more concerned about Il Makiage’s owner’s growth prospects heading into 2026 amid disruption and algorithm changes at one of the company’s key ad partners.

Truist Securities slashed its price target on Oddity by 78% to $18 and downgraded the shares to ‘Hold’ from ‘Buy,’ according to TheFly. The firm noted that while fourth-quarter results beat expectations, the much lower first-quarter guidance and the lack of a fiscal 2026 outlook reflect the negative impact of recent changes at the company's largest ad partner on Oddity's placement, which has doubled its customer acquisition cost.

This trend is magnified and will likely last a few quarters, given that the first quarter is the biggest customer-acquisition period, Truist said, adding that this "mishap is pushing us to the sidelines" until near-term visibility improves.

A Slew Of Downgrades

Needham downgraded Oddity to ‘Hold’ from ‘Buy’ and noted that Oddity "closed out FY25 strong” and the algorithmic change with a major ad partner has dislocated the business. The firm said that, given the uncertainty about whether and when Oddity can resolve this issue, the company's growth and margin trajectory are "difficult to forecast.”

The firm said the downgrade on the shares will remain in place until Needham has more confidence that Oddity has found a solution and can return to profitable growth. JPMorgan downgraded Oddity to Neutral from Overweight and cut the price target to $16, down from $59.

How Are Stocktwits Users Reacting?

Retail sentiment on Oddity jumped to ‘extremely bullish’ from ‘neutral’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on Stocktwits noted that the first quarter forecast “spooks them.”

In the last 24 hours, retail message volume on Stocktwits for the stock jumped 7,850%, and the ticker saw a 27% spike in followers on the platform.

Another user said that if the business is dependent on an "advertising partner," it is not a good business.

Shares of Oddity have declined nearly 68% in the last 12 months.

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