Beauty Health (SKIN Stock) Faces Market Turbulence, CEO Departs

By Patricia Miller


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Beauty Health's stock drops 64%, showing the market's reaction to its financial and operational struggles and highlighting risks and opportunities for investors.

Red Arrow Depicting Stock Dropping with beauty products and pills scattered around.
Major Downgrades Hit Beauty Health After Earnings Miss

What You Need To Know

Beauty Health Co (NASDAQ: SKIN) experienced a significant downturn following its third-quarter financial results, leading to a dramatic 64% drop in its stock value.

This decline, marking a record low, erased over half of its market capitalization. The skin-care provider not only missed its third-quarter estimates but also reduced its full-year net sales forecast. Additionally, the company announced the departure of its CEO and suspended its long-term financial outlook.

Compounding these issues, Beauty Health faced continued problems with its Hydrafacial Syndeo product, a skin treatment device that had been plagued with operational challenges since its U.S. launch last year.

This series of setbacks prompted a wave of negative reactions from analysts. Piper Sandler significantly downgraded Beauty Health, citing the messy situation and uncertainty about the company's future direction.

Other analysts, including those from JPMorgan Chase & Co. and Raymond James, also lowered their ratings, expressing concerns about the company's deep-rooted challenges and the recent discontinuation of its 2025 targets.

Despite efforts to address the technical issues with the Syndeo product, analyst confidence remains low.

This year, SKIN shares have plummeted by 83%, reflecting the skepticism and concern surrounding the company's operational and strategic challenges.

Why This Is Important for Retail Investors

  1. Market Value Impact: The substantial 64% plunge in Beauty Health Co.'s stock price reflects a significant erosion of market value. Retail investors holding shares in the company would have experienced a considerable decline in their investment value. This serves as a stark reminder of the volatility in individual stock investments and the importance of diversification in a retail investor's portfolio.

  2. Analyst Ratings as Indicators: The slew of downgrades from analysts like Piper Sandler and JPMorgan Chase & Co. illustrates the influence of expert opinions on stock performance. Retail investors often rely on these assessments to make informed decisions. Understanding analysts' perspectives can help retail investors better gauge the health and future prospects of their investments.

  3. Operational Challenges Relevance: The ongoing issues with Beauty Health's Hydrafacial Syndeo product highlight how operational difficulties can directly impact a company's financial performance and, consequently, investor returns. Retail investors should monitor not just financial results but also product performance and operational efficiency when evaluating investment opportunities.

  4. Leadership Changes and Strategy Shifts: The departure of Beauty Health's CEO and the suspension of its long-term financial outlook signal potential shifts in company strategy and leadership, which can have profound effects on business direction and success. Retail investors should be aware of such changes as they can drastically alter a company's growth trajectory and investment appeal.

  5. Sector and Market Trends: Beauty Health's struggles and the resulting stock performance provide insight into broader market and sector trends. The skincare and beauty industry, like any other, is subject to consumer preferences, technological advancements, and economic factors. Retail investors can use such events to better understand market dynamics and make more informed decisions about where to allocate their investment capital.

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How Can You Use This Information?

Here are some of the investing ideas that can be explored using this information:

Value Investing

This scenario presents a potential opportunity for value investors. After the significant drop in Beauty Health's stock price, the company might be undervalued compared to its intrinsic value. Value investors, after thorough research and analysis, could consider this an opportunity to buy a potentially undervalued stock with the expectation of a price correction over time, assuming the company resolves its operational challenges and stabilizes its leadership.

Value investing searches for undervalued companies that trade for less than their intrinsic values, with the expectation that they will eventually be recognized by the market.

Growth Investing

Growth investors, focusing on companies with high potential for future growth, might be cautious. However, they could explore other companies in the skincare and beauty sector that exhibit strong growth metrics, like revenue growth, market share expansion, or innovative product pipelines. This incident underlines the importance of operational efficiency and product success in driving growth.

Growth investing focuses on stocks of companies expected to grow at an above-average rate compared to other stocks in the market; learn more in our article titled 'What is Growth Investing?'.


The volatility experienced by Beauty Health highlights the importance of diversification across sectors and investment types. Investors might consider spreading their investments across various sectors to mitigate the risk associated with any single industry or company.

Diversification spreads investments across various assets to reduce risk and volatility in a portfolio.

Momentum Investing

Momentum investors, who capitalize on trends in stock prices, might use this situation to identify other stocks within the sector that are showing positive momentum. They might avoid Beauty Health due to its current negative trend but look for competitors or related industry players that are experiencing upward trends in stock performance.

Momentum investing rides the wave of existing market trends by buying assets that have shown an upward price trend and selling those in a downtrend.

Contrarian Investing

This approach involves going against prevailing market trends. Some investors might see Beauty Health's current woes as a contrarian opportunity, speculating that the market has overreacted and that there’s potential for a rebound. This strategy would require a belief in the company's ability to overcome its current challenges.

Contrarian investing involves taking positions against prevailing market trends on the belief that the crowd is wrong.

Read What Others Are Saying

What you should read next:

Investing with Insight

Knowing where to invest is not easy. Bullish and bearish sentiment is always vying for control, and investors like you can very quickly become overwhelmed.

And yet, no matter what the wider stock market is doing, there are always little-known gems to uncover. 

One potential growth stock flying under the radar is a dynamic company operating at the forefront of the entertainment industry. This business is diverse and multifaceted and led by industry veterans with extensive experience in entertainment and investment.

This high-potential US stock is targeting India’s tech-hungry 1.4 billion people.

Internet and social media adoption in India is surging, and the country has the LARGEST youth population worldwide. Over 650M people are under 25 years old, and 850M are under 35 years old. 

With rising economic and educational prospects, the country is a hotbed for digital engagement.

Some highlights you’ll want to know include:

  • This is one of the fastest-growing creator-media companies in India and the United States.

  • This company reaches 1 billion global consumers every month.

  • India was the second-fastest-growing market in the influencer marketing space in 2022. 

  • Global influencer marketing spend is expected to reach $34 billion in 2023.

  • This company has posted nine consecutive quarters of YoY growth, representing a 33% CAGR using its repeatable content strategy.

  • This impressive small-cap has just appointed a former TikTok Country manager as its India Group CEO. 

Finally, this stock is analyst-backed with a potential 114% upside from the analyst initiation date.

If you're intrigued by this stock’s promising prospects, why not take a closer look?


In this article:

Healthcare Services
Healthcare Providers and Services
Beauty Care Products
Beauty Health

Author: Patricia Miller

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of, has not been paid for the production of this piece by the company or companies mentioned above.

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