2D·

25% correction at Hims & Hers now worth buying?

The Hims & Hers share has been in free fall for several days and there seems to be no stopping it.

The reason for this was the announcement by the FDA on Thursday that the bottleneck in tirzepatide injections has been resolved.

This bottleneck meant that Hims & Hers could manufacture its own weight loss products without legal consequences and has now been terminated with a deadline of February 2025.

Subjective: In my view, this correction is a more serious problem. Of course, this was to be expected in the long term, but this announcement came as a surprise. The sale of slimming products is a lucrative area due to the high margins and brought Hims & Hers a lot of money into the coffers. This was still priced in for at least the first half of 2025, giving Hims & Hers an estimated P/E ratio of around 30. The next quarterly figures will now show where the fair valuation lies and what the future holds.

In conclusion, I remain invested, but will not add to the stock as, unlike the Amazon competitor report, this is serious, fundamentally damaging news.

$HIMS (-1.68%)

4 Comments

Carsten@Carsten1970

I also got out with a large part after the Amazon report. It seems that it wasn't a bad idea. If it goes to 14.xx, I would get in again

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Aktienfoxx@Aktienfoxx

Hims sold Semaglutide, which is still on the shortage list, and GLP1 was normalized by most analysts and valued as a cash stock, as it is not sustainable! It was also clear that lilly and novo are actively trying to end the shortage (also actively building factories). It is an exaggeration as there is still a shortage and they already have an alternative up their sleeve!!!

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Marc@DerAzubi

The sale of slimming products only accounts for a small proportion of turnover. The company is fundamentally well positioned with its business model. We are still at almost 30% on a monthly basis... so a correction like this is normal. You have to look at the overall picture of the chart and not just the last few days. Every major upward movement is always followed at some point by a relatively large correction.

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Jonas@Leipziger_Jung

The post is not quite right. Tirzepatide was taken off the shortage list. However, HIMS sells Semaglutide. They may continue to do so. Semaglutide is still in shortage, which means that sales will remain for the time being. And HIMS will then sell Liraglutide from Q1 2025, as this is when the patent ends.

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