cnbc.com
HIMS Stock Rises Despite Volatility, Driven by Diverse Revenue Streams
Hims & Hers Health (HIMS) stock price rose from $23.50 in July to $32.50 currently, despite September's dip below $14; its compounded semaglutide injections, representing under 10% of revenue, contribute to volatility, while the company shows continued strength.
- How does the FDA's classification of GLP-1 drugs as being in shortage impact HIMS and its revenue streams?
- The stock's price increase follows a breakout from a three-year resistance zone of $25.50. The FDA recently removed Eli Lilly's GLP-1 from the shortage list, but Novo Nordisk's remains, impacting investor sentiment. The continued price strength, however, suggests broader market confidence in HIMS beyond its weight-loss offerings.
- What is the current market valuation of Hims & Hers Health and what factors are driving its price volatility?
- Hims & Hers Health (HIMS) stock price rose from $23.50 in July 2023 to $32.50 currently, despite a dip below $14 in September. The company offers compounded semaglutide injections, a weight-loss drug similar to Ozempic and Wegovy, contributing to its volatility. This drug accounts for under 10% of HIMS revenue.
- What are the long-term growth prospects for Hims & Hers Health beyond its weight-loss drug offerings, and what are the key risks to its future performance?
- HIMS's diverse revenue streams and continued strong relative strength suggest future growth potential. The removal of Eli Lilly's GLP-1 from the shortage list could diminish the impact of FDA classifications on HIMS's success. The long-term technical projection of $65.00 remains intact, provided the $25.50 support level holds.
Cognitive Concepts
Framing Bias
The article frames the stock price volatility as a characteristic of the company rather than a risk factor. The positive aspects of the company and the stock price trajectory are emphasized, while the risks associated with such volatility are downplayed. The headline (not provided) likely contributes to this positive framing. The language used, such as "splashy new age company", contributes to a positive perception.
Language Bias
The language used is generally positive and optimistic. Phrases such as "splashy new age company" and "performing quite well" carry positive connotations. The description of the stock price dip as a "dip below $14 in September" is rather understated given the volatility. More neutral language might include "experienced a significant price decrease" or "the stock price fell to $14 in September".
Bias by Omission
The analysis focuses heavily on the stock price and the company's weight-loss drug, potentially omitting other significant aspects of Hims & Hers Health's business and financial performance that could provide a more balanced view. The article mentions other revenue channels but doesn't elaborate, leaving the reader with an incomplete picture of the company's overall health and prospects. Additionally, potential risks associated with the company or the stock are not discussed.
False Dichotomy
The article presents a somewhat simplified view of the situation by focusing mainly on the positive aspects of the stock performance and the company's prospects, without sufficiently addressing potential downsides or counterarguments. The statement "the upside could be a double from here" is presented as a straightforward projection without acknowledging inherent uncertainties in the market.
Sustainable Development Goals
Hims & Hers' telehealth platform provides increased access to healthcare services, including weight loss medications. This improves access to care, particularly for those in underserved areas or with limited mobility, contributing positively to SDG 3 (Good Health and Well-being). The availability of compounded semaglutide, while controversial due to FDA regulations, addresses a potential shortage of weight loss drugs, further contributing to improved health outcomes.