Zepp Health stock sinks 58% in a month despite Amazfit launches

Zepp Health stock is down around 58% from its October peak, wiping out a large chunk of gains made earlier in 2025. The pullback comes despite the company releasing multiple Amazfit devices and posting strong quarterly growth.

The rally started modestly in June. By early September, the stock had gone parabolic, climbing from under $3 to a high of $61.85 in less than three months. This kind of move always invites questions. Some traders saw a turnaround story backed by actual numbers. Others likely jumped in on momentum alone.

The climb could not last forever. What followed was a sharp reversal. The price has since dropped to the mid-20s, erasing hundreds of million of dollars in market value. While Zepp Health’s business is still very much alive, investors clearly cooled on the idea that a steep and fast rise could be sustained.

The rise was built on more than hype

The initial surge wasn’t just retail buzz. Zepp Health reported 46% year-on-year revenue growth in Q2 2025, driven by new models. Balance 2 leaned into a more premium style. Helio Strap expanded the ecosystem with a new form-factor. Even the lower priced models like Bip 6 and Active 2 brought enough upgrades to refresh interest. Plus there was the T-Rex 3 Pro later on which pushes durability and outdoor tracking.

Then came Q3 results, which showed an even bigger 78.5% jump. Crucially, the company also returned to breakeven on an adjusted operating basis.

That was enough for some analysts to lift their price targets. Several analysts forecast the stock could hit over $60 based on improved margins and revised revenue estimates. The market ran with it. And the stock price did hit those levels in early October.

Momentum was helped by strong sales of low-cost fitness watches and a visible shift in Zepp Health’s strategy. The company pushed further into sleep and recovery, introduced readiness scores, and updated its Zepp Health app with better metrics. There were signs of maturity in both product and software.

But the fall was about cooling expectations

None of this stopped the correction. The stock began to slip in October. A mix of slowing momentum and cautious Q4 guidance triggered a wave of selling. Investors expecting continued 70%+ growth were told to expect closer to 40%. That still sounds decent, but when a stock has risen more than twenty-fold in three months, “decent” is not always enough.

Margins are still a concern. Even with improvements, Zepp Health remains in a low-margin hardware business. Tariffs, chip prices and logistics costs all weigh on the bottom line. There’s also the challenge of standing out in a saturated market. The wearable space is crowded, and even well-reviewed products struggle to break through without major brand leverage.

This wasn’t a case of a flop launch or a sudden collapse in demand. It was more a recalibration. A steep run-up pulled in fast money. That money moved on when the story looked less explosive. Zepp Health didn’t fall short. It just stopped surprising people.

The drop doesn’t undo the momentum

Zepp Health may have lost steam in the market, but its product lineup is in better shape than it was at the start of the year. The Amazfit range has expanded across styles and price points. The Zepp Health app keeps evolving, with better integration and deeper insights. The Helio Strap adds a fresh layer to the ecosystem, and the rugged models still appeal to outdoor-focused users.

What we’re seeing in the share price is a swing in sentiment, not a collapse in fundamentals. And even after the drop, the stock is still trading nearly ten times higher than it was back in January.

For wearable tech followers, the bigger story is not the price action. It’s the sheer volume of activity across the Amazfit platform and how that sudden wave of launches briefly pulled the brand into sharper focus. If Zepp Health keeps iterating on hardware and tightening its software experience, the spotlight could easily return. The hype may have cooled, but that often creates space for a steadier next phase.

Subscribe to our monthly newsletter! Check out our YouTube channel.

And of course, you can follow Gadgets & Wearables on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.