Oren Holtzman’s Beauty Bet Made Him a Billionaire, Then an Algorithm Shock Hit ODDITY

Oren Holtzman, then a 29-year-old accountant, bet in 2013 on the struggling Israeli makeup company Il Makiage, which was carrying about 40 million shekels in debt. He borrowed money, mortgaged his apartment, and bought control for 12 million shekels despite warnings from others. He later told people he would take it to Wall Street, and that is exactly what happened.

Under Holtzman and his sister, Shiran Holtzman-Erel, ODDITY expanded online, added global partners including Louis Vuitton, and took the company public on Nasdaq. For a time, the strategy looked exceptional: less than two years after the IPO, ODDITY’s market value reached $4.3 billion, helped by double-digit growth in revenue, net profit, and operating cash flow. Holtzman, who is ODDITY’s CEO, sold shares at the peak last year for $385 million, bringing his total cash proceeds from stock sales to almost $700 million.

The picture changed sharply over the past year. ODDITY’s stock has fallen 86% from its peak, and the company is now valued at about $630 million. In February, after reporting 2025 results, it said a disruption at its main advertising partner caused a surge in customer acquisition costs and hurt revenue, creating enough uncertainty that it withheld full-year guidance. The issue appears tied to its “Try Before You Buy” model, which may have led the ad algorithm to interpret return rates as a negative signal and reduce exposure.

Although ODDITY said the problem was technical and not a sign of brand weakness or market saturation, investors have not been convinced. Analysts from Jefferies and Oppenheimer remain neutral, with Oppenheimer warning that the company’s heavy dependence on one advertising platform is a structural risk. Holtzman said on the latest earnings call that ODDITY has handled similar algorithm changes before and expects to solve the disruption, but most analysts are waiting for proof before turning positive again.