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Tara Lachapelle

Ulta Investors Are Just Confused

They mistakenly priced Ulta like a tech stock, but it's still a fine business.
Photographer: Brian Ach/Getty Images

This summer's steep selloff in shares of Ulta Beauty Inc. shows that investors still don't understand the beauty-supply chain. 

It was just last month that Ulta closed at an all-time high of $313.73 a share, but it didn't stay up there for long. The stock tumbled 18 percent in the short time since then, erasing nearly all of its gains for the year. Investors could have avoided this roller-coaster ride.