Is Hims & Hers Health Stock a Smart Buy After Plunging More Than 50%?

Core Viewpoint - Hims & Hers Health experienced a significant stock decline of over 50% after a period of rapid growth, primarily due to the FDA's announcement ending the national shortage of semaglutide, which had previously driven sales for the company [1][2][3]. Group 1: Stock Performance - Hims & Hers stock surged more than 670% from January 1, 2024, to February 19, 2025, before plummeting over 50% [1]. - Following the FDA's decision, the stock has shown some signs of recovery, indicating that the worst may be over for investors [4]. Group 2: Revenue and Business Outlook - The company projects full-year 2025 revenue between $2.3 billion and$2.4 billion, reflecting a year-over-year increase of 59% [4]. - Over two-thirds of Hims & Hers' revenue is expected to come from non-weight loss products, with significant contributions from men's and women's dermatology, mental health, and sexual health, each projected to generate over 100 million in sales [5]. - Hims & Hers plans to launch a generic version of Novo Nordisk's GLP-1 inhibitor Victoza (liraglutide) later this year, which is anticipated to be successful [7]. Group 3: Market Position and Competition - Despite losing the ability to sell compounded semaglutide, Hims & Hers has other weight-loss products that remain popular, with costs as low as 69 per month [6]. - The potential approval of new obesity drugs, including an oral version of semaglutide, may increase competition in the weight-loss market [8]. - Hims & Hers trades at nearly 63 times forward earnings, suggesting that the stock may have been overvalued prior to the FDA decision [9].