What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 4.9% in the afternoon session after news of increased competition in the weight-loss drug market overshadowed the company’s own positive announcements.
The stock's weakness appeared linked to Novo Nordisk's decision to slash the U.S. price of its popular GLP-1 drugs, Wegovy and Ozempic. The price cut intensified pressure in the weight-loss market where Hims & Hers operates. This development overshadowed a bullish announcement from Hims & Hers, which authorized a new $250 million share repurchase program. The buyback plan was set to be executed over the next three years and followed the recent completion of a $100 million repurchase program.
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What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 6.9% on the news that the company reported third-quarter 2025 results that showed strong revenue growth, even as its profit and future guidance fell short of expectations.
The telehealth company's sales increased by 49.2% from the previous year to $599 million, beating analysts' forecasts. This growth was driven by high demand for its personalized care, new specialty service launches, and an expanding international reach. However, the report also contained weaker points. The company's profit of $0.06 per share was below what analysts had predicted. Furthermore, its revenue guidance for the next quarter of $615 million was also slightly below market estimates. Despite these mixed signals, investors seemed to focus on the strong top-line sales performance.
Hims & Hers Health is up 37.2% since the beginning of the year, but at $34.57 per share, it is still trading 49.7% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $3,406.
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