Why elf Beauty Inc. (ELF) Went Down on Tuesday

We recently compiled a list of the 10 Firms Fall Amid Disappointing Earnings Performance. In this article, we are going to take a look at where elf Beauty Inc. (NYSE:ELF) stands against the other stocks.

Wall Street’s main indices all finished in the green territory on Tuesday, buoyed by news that the US is set to temporarily delay taxes levied on select goods from Canada and Mexico to make way for a potential negotiation.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

Meanwhile, 10 companies bucked an overall positive market sentiment, leading declines mostly due to disappointing earnings performance in the past quarter. This article details the reasons behind their poor performance.

To come up with Tuesday’s biggest losers, we only considered the companies with $2 billion in market capitalization and $5 million in daily trading volume.

A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.

elf Beauty Inc. (NYSE:ELF)

Shares of cosmetics giant elf Beauty Inc. (NYSE:ELF) saw its share prices drop for a third day on Tuesday, losing 5.38 percent to close at $88.44 apiece amid concerns over its January sales data.

In a report by Nielsen, elf Beauty reported a 2-percent decline in January sales including sales from Amazon, and a decline of 7 percent without sales from the e-commerce giant.

At 4:30 pm on Thursday, investors will be closely watching out for the release of the company’s third-quarter performance for fiscal year 2025, as well as indications about its outlook for the full year.

According to earlier comments from analysts, elf Beauty’s sales remain muted due to pressure in the cosmetics category, as the company seeks to increase its market share.

Overall ELF ranks 10th on our list of Tuesday’s biggest losers. While we acknowledge the potential of ELF as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ELF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.