What Happened?

Shares of skincare company BeautyHealth (NASDAQ: SKIN) jumped 42.7% in the afternoon session after the company reported strong first quarter 2025 results which included significant beats on sales, gross margin and EBITDA. BeautyHealth planned to manage some of its tariff risk by moving its production to the U.S. and changing how it sells in China, which could help over time. Overall, we think this was still a decent quarter with some key metrics above expectations.

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What The Market Is Telling Us

BeautyHealth’s shares are extremely volatile and have had 70 moves greater than 5% over the last year. But moves this big are rare even for BeautyHealth and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 17 days ago when the stock gained 10% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.

BeautyHealth is up 13.4% since the beginning of the year, but at $1.83 per share, it is still trading 49.2% below its 52-week high of $3.59 from May 2024.

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