Hated Moats Investor
Contrarian Quality-Stock Research, 25 Years in Markets, GOOGL Since 2011
Heavily shorted stocks like Hims & Hers are generally best avoided unless one can clearly explain why the short thesis is wrong, what would prove it right, and why the upside compensates for the risk. Shorting is expensive and risky and usually done by better-informed institutions, so high short interest often reflects a real bearish case such as bad fundamentals, stretched valuation, dilution risk or a weak balance sheet. Anomalies like GameStop should not be romanticized. x.comÂ
Hims & Hers management's capital moves look like an active effort to destroy a company with so much potential. A post the author replies to lists them: doing an offering now, after shares traded above $60 less than a year ago, deploying none of the authorized buybacks at $13-15, the CFO selling most of his stock, prolific CEO selling and no insider buying. x.comÂ
Hims & Hers suffers from bad management, and government pressure is squeezing its pharma margins. 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
Hims & Hers has enormous long-term potential from its brand, personalized platform and recurring model, and that upside heavily outweighs the bear case. Regulation and customer retention are real questions, and they explain why the opportunity exists. 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 has zero moat. 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 is uninvestable without trust in its management team, and there is absolutely no confidence in it. The stock looked overvalued at $60 before its steep fall; as a popular retail stock it could return to $60 or beyond, but distrust of management rules it out. x.comÂ
Hims & Hers, a peptide and GLP-1 play, could make a big move this week because heavy short interest of 33.6% meets a very tight chart setup. After a big move up and a pullback, the stock sits on key longer-term levels and is riding its moving averages, tight enough to structure a trade at 5:1 reward to risk or better. It is a non-traditional setup for this style of trading. x.comÂ
Hims & Hers is going through a major transition period with no growth, so it is not worth owning right now, even though the long-term view remains bullish. x.comÂ
