e.l.f. Beauty (NYSE:ELF) just notched its 24th straight quarter of growth, but Wall Street wasn't impressed. The cosmetics powerhouse posted a 31% jump in Q3 net sales, hitting $355.3 million, while grabbing another 220 basis points of market share in the U.S. But the celebration was short-lived. Management slashed full-year revenue guidance to $1.30 billion$1.31 billion, down from its prior $1.315 billion$1.335 billion range. CEO Tarang Amin blamed the weak January on fading social media buzz, pointing to the LA wildfires and uncertainty over TikTok's brief ban as key factors that dampened consumer chatter.

• Warning! GuruFocus has detected 3 Warning Signs with ELF.

Investors didn't take the news lightly. ELF stock tanked nearly 21% at 12.11pm today, sinking to $70. That's a brutal 68% drop from its 52-week peak of $221.83. The sell-off underscores just how much ELF's meteoric rise was fueled by digital engagement. When beauty trends dominate TikTok, ELF wins. When that chatter slows? Not so much. The company still holds strong positioning at major retailers like Target, Walmart, and Ulta, but its ability to sustain hypergrowth without the same level of viral hype is now in question.

Goldman Sachs, however, is sticking to its guns. The firm reaffirmed its Buy rating on ELF but trimmed its price target from $165 to $142, citing near-term challenges but strong long-term fundamentals. Analysts argue that ELF remains one of the most disruptive players in the beauty space, consistently outpacing industry trends. With a loyal customer base and expanding international presence, ELF isn't out of the gamejust facing a tougher playing field.