American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Here’s why Hims & Hers stock price has crashed: buy the dip?

by admin March 27, 2025
March 27, 2025
Here’s why Hims & Hers stock price has crashed: buy the dip?

Hims & Hers stock price has imploded this year, erasing some of the gains made in 2024 when it became one of the top-performing companies in the US. HIMS has crashed to $33.35, down by over 54% from its highest point this year. So, why has the telemedicine stock crashed, and what to expect.

Why HIMS stock has plunged

Hims & Hers is a top company that sells healthcare products used by millions of customers in the US. Its strategy is to focus on niche conditions that people have struggled with for years. These conditions include weight loss, hair, anxiety, skin, and sex. Largely, all Americans face at least one of these challenges, giving it a large, addressable market.

The main reason why the Hims stock price has crashed is that its biggest business is under threat. Hims & Hers started offering compounded GLP-1 treatments, which are generic versions of the weight loss products made by companies like Eli Lilly and Novo Nordisk. 

The compounded drugs are effective and much cheaper than those made by large companies. Customers pay about $200 for the drugs sold by Hims, much lower than the $1,000 sold by the larger companies. 

Hims & Hers is also cheaper than other companies in the industry. The average annual cost of its GLP drugs is $1,980, lower than WW’s $2,208, Henry’s $2,864, Noom’s $3,218, and Ro’s $4,583.

Read more: Will the falling Hims & Hers stock price recover in 2025?

The challenge, however, is that Hims & Hers drugs have not been approved by the FDA, which has sued to stop the tirzepatide sales. In a court ruling this month, a judge sided with the FDA, meaning that, in the longer term, Hims could face a challenge. Hims is running adverts and campaigns pressuring the FDA to allow compounding. 

The weight loss division is an important part of Hims business because of its higher margins. Also, unlike other divisions, these customers will remain with the company for a long time. In most cases, stopping to take weight loss products usually leads to more weight gain.

Hims growth has accelerated

The most recent financial results show that Hims & Hers business has surged in the past few quarters, mostly because of its compounded drugs. 

Hims & Hers made over $481 million in the fourth quarter, up by 95% from the same period  year earlier. This led to an annual revenue of $1.5 billion, a 69% annual increase.

The company also made a net profit of $26 million in the fourth quarter and $126 million in the full year. This growth happened as the number of subscribers surged by 45% to 2.2 million. Most of these subscribers are mostly because of its weight loss products. 

Analysts anticipate that this growth will continue in the coming years. The average estimate is that Hims’ revenue will grow by 92% in the first quarter to $535 million and $2.3 billion this year.

Read more: Is the soaring Hims & Hers stock a good investment?

Hims & Hers stock price analysis

HIMS chart by TradingView

The weekly chart shows that the HIMS stock price peaked at $72.9 earlier this year, and has crashed to $33.35. It has remained above the 25-week Exponential Moving Average (EMA), and is above the key support at $25.30 

The HIMS stock has moved inside the ascending channel in the past few weeks. Also, the two lines of the MACD indicator have pointed downwards, while the Relative Strength Index (RSI) have pointed downwards.

Therefore, the stock will likely have a strong bullish breakout when the GLP issue cools in the coming weeks. If this happens, the next key resistance point to watch will be at $50, up by almost 50% from the current level.

The post Here’s why Hims & Hers stock price has crashed: buy the dip? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
20% of South Korean officials hold crypto worth $9.8M
next post
From Hyundai, Kia to Tesla: here’s how Trump’s auto tariffs will hit carmakers

Related Posts

New Covid XEC variant spreads across Europe and...

September 17, 2024

Inside China’s export control maze: how Beijing regulates...

April 24, 2025

The Blockchain Group plans massive fundraise to expand...

June 9, 2025

Largest U.S. sportsbooks join forces to tackle problem...

March 29, 2024

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

Asia markets mixed as Albanese wins second term;...

May 5, 2025

Top 4 catalysts for the SCHD ETF: will...

May 5, 2025

Trump Media director accused of ‘hacking’ files in...

April 14, 2024

Europe markets open: stocks edge higher; auto sector...

April 29, 2025

What’s going on with Angel One stock?

October 15, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,388)
    • Investing (2,615)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved