What Happened?
Shares of beauty and waxing service franchise European Wax Center (NASDAQ: EWCZ) fell 2.6% in the afternoon session after the stock traded lower amid broader market headwinds, as September is historically a challenging month for stocks.
The decline extends a recent losing streak for the company, with the stock now having fallen for three days in a row. Historically, September is known as a bumpy month for equities, often marked by increased volatility and investor anxiety. This seasonal trend can amplify pressure on individual stocks, particularly those already showing signs of weakness. European Wax Center's shares have fallen in six of the last ten trading days, reflecting this ongoing negative momentum.
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What Is The Market Telling Us
European Wax Center’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 3.7% on the news that markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines.
European Wax Center is down 34% since the beginning of the year, and at $4.20 per share, it is trading 51.2% below its 52-week high of $8.60 from November 2024. Investors who bought $1,000 worth of European Wax Center’s shares at the IPO in August 2021 would now be looking at an investment worth $196.12.
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