Olaplex Holdings plunges 7.59% in pre-market trading as investor caution mounts over consumer spending concerns

Olaplex Holdings fell 7.5862% in pre-market trading on Jan. 2, 2026, marking one of the largest intraday declines in its recent history. The sharp drop triggered heightened investor scrutiny amid ongoing volatility in the beauty sector.

Analysts noted the selloff aligns with broader market concerns over consumer discretionary spending amid macroeconomic uncertainty. While no official guidance or earnings updates were released, the move reflects renewed caution among shareholders following mixed performance trends in key product categories.

Short-term technical indicators show the stock has broken below critical support levels, raising questions about near-term momentum. Institutional traders have been observed reducing positions in the name, according to pre-market order flow data. The decline contrasts with recent positive sentiment around product innovation, highlighting the sector's sensitivity to macroeconomic signals.

No official explanation has emerged for the selloff, though several factors could be in play, including macroeconomic forecasts and shifting consumer behavior in the beauty industry. Market participants are now closely watching for any further guidance or strategic updates from the company.