🚨 HIMS crashed – I bought MORE. Here’s why
Key Points
📉 Hims & Hers stock plunged 34% in a single session after Novo Nordisk ended their partnership.
💡 But weight-loss products make up only 13% of the company’s revenue—fundamentals remain strong.
🚀 The true value lies in the user experience, platform, and personalization—not in any single drug.
The Crash: Panic or Opportunity?
On June 24th, Hims & Hers Health saw its stock price collapse by more than 34% in just one day. The reason? Novo Nordisk abruptly terminated its partnership with the company, reportedly due to concerns over misleading marketing practices tied to the weight-loss drug Wegovy.
But is this truly a sign of structural weakness? Or is the market overreacting to what may actually be a short-term issue?
Wegovy’s Real Impact: Just 13% of Revenue
Let’s look at the numbers. According to data from the Forecaster Terminal, weight-loss products like Wegovy account for only 13% of total sales, roughly $200 million out of $1.48 billion in annual revenue.
So what drives Hims & Hers’ business?
🧔 Hair loss & sexual health: 45% of sales
đź’† Skincare & beauty: 29% of sales
This diversification shows that the company is not overly dependent on Wegovy—or on any one product.
UX Over Molecules: The Real Moat
What sets Hims & Hers apart isn’t the specific drugs it sells, but how it sells them. The company’s competitive advantage lies in its platform, user experience, and personalization.
Just like people buy branded headache medicine (like Moment in Italy) without realizing the active ingredient is simply ibuprofen, Hims users are buying outcomes—“lose weight,” “have better sex,” “regrow hair”—not brand names.
Most customers don’t care if the treatment says Wegovy or not. What matters is that it works—and that it’s affordable and accessible through a slick, simple interface.
This makes the loss of Novo Nordisk less of a catastrophe and more of an opportunity to switch to another semaglutide supplier, perhaps on better terms.
Fundamentals Are Still Strong
The fundamentals of the business remain healthy. Revenue and net income are growing steadily, and the Altman Z-Score of 33Â indicates financial solidity.
In fact, the Forecaster Terminal chart shows that the stock price has fallen far below the company’s earnings trendline—a classic indicator of market overreaction and potential undervaluation.
Conclusion: A Market Overreaction
We believe the selloff was overdone. This is not a company in crisis—it’s a disruptor in one of the most outdated sectors in the world: healthcare. Just as Amazon reinvented shopping and Zalando reshaped how we buy shoes, Hims & Hers is redefining how people manage their personal health online.
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We doubled our long position because the drop provided a rare opportunity: a fast-growing, tech-driven healthcare company selling at a steep discount, despite minimal impact from the Novo fallout.
