Short-selling is an interesting part of the stock market that can be dangerous and even controversial. Investors selling shares short are hoping that the price of certain stocks falls so that they can make a profit.
Shares of Hims & Hers Health (NASDAQ:HIMS) continued to meltdown Tuesday in noontime trading after the direct-to-consumer healthcare platform said it couldn't guarantee it would be able to continue selling its knockoff versions of weight-loss drugs Ozempic and Wegovy.
Hims & Hers' revenue channels witness strong growth on the back of solid product demand in the fourth quarter.
In this video, I will go over the fourth-quarter earnings report from Hims & Hers (HIMS -27.60%) and explain why the stock crashed on Tuesday. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Hims & Hers (HIMS -27.66%) continues to grow at an astounding rate as the company grows subscribers and revenue per subscriber. But Hims & Hers stock is falling after earnings because investors are concerned about the future of GLP-1s.
Hims & Hers shares fell on Tuesday, a day after the company released fourth-quarter results that disappointed on gross margin and outlined changes to its weight loss business. The company reported $481 million in revenue for the quarter, up 95% from $246.6 million during the same period last year.
Hims & Hers Health (HIMS) stock is dropping in extended hours upon the telehealth company's fourth quarter earnings release, topping revenue ($481.14 million vs. forecasts of $470.39 million) and total subscribers estimates (2.23 million vs.
Novo Nordisk shares rallied on Tuesday as a maker of a weight-loss drug alternative confirmed it won't be selling it for much longer.
Shares of Hims & Hers Health tumbled 18% premarket on Tuesday as Wall Street analysts questioned the telehealth provider's lofty sales forecast in the face of looming restrictions on compounded weight-loss drugs.
Hims & Hers experienced a sell-off due to profit-taking and weaker-than-expected EBITDA margins, despite strong revenue growth. The company is projected to generate over $2 billion in revenues and $350 million in free cash flow in 2025, with no debt. While EBITDA margins have fluctuated, free cash flow remains strong, making the stock attractive at 26x forward free cash flow.
Hims & Hers stock fell ~19% post-Q4 earnings despite revenue beating expectations and EPS aligning with estimates, attributed to gross margin concerns and potential dependency on GLP-1 for future growth. The company's growth remains strong, with a 95% YoY revenue increase, an expanding subscriber base, and higher revenue per subscriber, indicating robust market capture and customer loyalty. Future potential is promising with new service additions, a vast addressable market, and strategic diversification, mitigating risks from competition and regulatory changes.
Josh Lipton takes a closer look at the top stories investors need to know after the closing bell on Asking for a Trend. Hims & Hers Health (HIMS) CFO Yemi Okupe breaks down the quarterly results as shares plunge following the report.