Pepe Invests
Retail Investor, Stocks, Real Estate, AI & Bitcoin
Hims & Hers is executing poorly despite its potential, and its appeal as a retail darling is fading after a rough first quarter. Per @himshouse, revenue was $608 million versus $617 million expected, EPS was -$0.40 versus $0.03 expected, and gross margin fell to 65% from 73% a year earlier, while subscribers grew 9% to 2.584 million. CEO Andrew Dudum can do better. x.comÂ
Hims & Hers is increasingly executing on its long-term vision, and the CEO's explicit aim to build a Netflix of healthcare strengthens conviction in a compelling long-term opportunity. CEO Andrew Dudum says providers on the platform can now prescribe Lilly's Zepbound vials and KwikPen and Foundayo through LillyDirect at self-pay prices, offering a full range of FDA-approved GLP-1s to change consumer behavior through choice. x.comÂ
Hims & Hers' latest earnings show a deteriorating business, and hype is not worth much when that happens. x.com x.comÂ
Hims & Hers suffers from bad management, and government pressure is squeezing its pharma margins. x.comÂ
Hims & Hers' compounding direct-to-consumer distribution makes it stupidly undervalued next to Tempus AI. Hims has $2.6B in trailing revenue at a $6.7B market cap, with 66.5% annual revenue growth from Q3 2021 to Q2 2026; Tempus has $1.4B in revenue, a $14.9B market cap and 40.4% annual growth. x.comÂ
Hims & Hers is not a $100 stock yet, because growth is slowing and there is no new driver on the scale of GLP-1. Customer acquisition and conversion are slowing and average spend per user is declining, which quarter-over-quarter figures show better than the 40%+ year-over-year narrative. Guidance was narrowed and comparisons get harder. Investing on past strong growth is looking backward. Hims is a great company, but the stock will take time to reach new highs. x.comÂ
Hims & Hers looks good on paper, but past revenue growth does not guarantee future growth and margins are falling, which is very bad. Its peptides story could rerate the stock if executed, but it brings another regulatory overhang: peptides will be in regulation headlines every day and the stock will trade on them. x.comÂ
Hims & Hers' growth is on sale at a PEG of about 0.8 because last year's crash left the stock cheap. Revenue grew 40% to $753M last quarter and full-year guidance was raised to $3.3B; sub-1 PEGs are usually born from drawdowns like that. x.comÂ
Hims & Hers is a meme stock, not a fundamental story, after missing EPS by 1,440%, with earnings down 300% year over year and 600% quarter over quarter. The company pays influencers to pump the stock, and even a move to $200 would not change that view. x.com x.comÂ
Hims & Hers' shrinking free cash flow is weighing on the stock, since share prices follow a company's ability to generate free cash flow over time. Over the last 12 months, free cash flow fell 65% and the stock fell 44%. x.comÂ
Hims & Hers' peptide capabilities may be underappreciated, setting up a strong bounce after peptide news. Per @riyadosofian, it is the only telehealth company with a peptide facility and global distribution system. A strong bounce is expected now as the stock holds outside its wedge. x.com x.comÂ
Hims & Hers isn't worth owning because of its management: a leader who can pump and then dump the stock is not a trustworthy type. Zeta Global is the preferable alternative. x.comÂ
