Everyone’s looking for the next "Amazon of healthcare," and for a minute there in early 2025, it really looked like Hims & Hers (HIMS) was it. The stock was screaming toward all-time highs, fueled by the absolute frenzy surrounding GLP-1 weight loss drugs. But if you've glanced at the hims and hers stock price lately, you know the vibes have shifted. As of mid-January 2026, the stock is hovering around $32, a far cry from its 52-week peak of nearly $73.
It’s been a wild ride. Honestly, it’s a classic case of "growth at any cost" meeting the brick wall of regulatory reality. While the company is still growing revenue—pulling in nearly $600 million in Q3 2025 alone—investors are suddenly a lot more worried about what happens when the FDA stops playing nice with compounded medications.
The GLP-1 Rollercoaster and Your Portfolio
Let’s be real: the main reason HIMS became a retail investor darling was its ability to offer affordable, compounded versions of semaglutide (the active ingredient in Wegovy and Ozempic). When those brand-name drugs were in a massive shortage, Hims stepped in. They made a killing. In 2024, they did about $225 million from that segment alone.
But here’s the kicker. The FDA's stance on compounding is basically a "break glass in case of emergency" rule. Once the shortage for the branded drugs is officially over, the legal window for mass-producing "copies" starts to close. In February 2025, when the FDA moved to declare the Wegovy shortage over, the hims and hers stock price took a massive 30% hit almost overnight.
The company hasn't just sat there, though. They’ve been fighting back in court and pivoting toward "personalized" dosages. The argument is that by customizing the dose to mitigate side effects, they aren’t just making a copy—they’re making a different, better product for the individual. It's a clever legal workaround, but it’s high-stakes.
Why the Market is Spooked Right Now
If you look at the numbers, Hims is still a growth machine. They ended 2025 with nearly 2.5 million subscribers. That's a huge base. However, the costs to keep those people around are getting steep. BofA Securities recently lowered their price target to $29, citing concerns about 2026 being a "heavy investment year."
Basically, Hims is spending a fortune on:
- Vertical integration: They’re building their own labs and supply chains so they aren't just a middleman.
- International expansion: They just bought Livewell to get a foothold in Canada and are pushing hard into the UK and Europe.
- New specialties: They’re moving into menopause treatments, hormone health, and even "longevity" treatments like peptides.
It’s the classic Amazon playbook: plow every cent of profit back into the business to dominate the market. But in a high-interest-rate environment, the market isn't always patient enough for that. They want to see those 13% EBITDA margins hold up, not shrink because the company decided to buy a bunch of labs in Ireland.
Valuation: Is It Actually Cheap?
This is where it gets interesting. Depending on who you ask, HIMS is either a bargain or a trap.
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Some analysts at Simply Wall St argue the stock is fundamentally undervalued, with an intrinsic value closer to $63 based on future cash flow. They see the current $32 price as a 50% discount. On the other hand, traditionalists look at the P/E ratio, which is sitting around 60x. For a healthcare company, that is expensive. The industry average is usually closer to 22x.
You’re essentially paying a premium for the "tech" part of this "med-tech" company. If you believe they can keep growing revenue at 30% a year and successfully cross-sell hair loss pills to weight loss patients, then the current hims and hers stock price looks like a steal. If you think the FDA is going to shut down the compounding party for good, it’s still overvalued.
What Most People Miss: The "Stickiness" Factor
There is a lot of talk about the "Hers" side of the business reaching $1 billion in revenue by 2026. This is huge. It’s not just about erectile dysfunction and hair loss anymore. By moving into menopause and chronic weight management, Hims is trying to move from "one-off" sales to a "cradle-to-grave" healthcare relationship.
The average revenue per subscriber is actually up to about $80. That means people aren't just signing up for the cheap GLP-1s and dipping; they're sticking around for other stuff. That "stickiness" is what will eventually decide if this stock is a $100 winner or a $10 loser.
Current Analyst Sentiment (Early 2026)
| Analyst Firm | Rating | Price Target |
|---|---|---|
| BofA Securities | Underperform | $29.00 |
| Leerink Partners | Outperform | $41.00 |
| Truist Securities | Hold | $37.00 |
| Zacks Investment Research | Hold/Sell | N/A |
As you can see, nobody really agrees. That’s usually a sign of a high-volatility stock.
The Path Forward for HIMS
If you're holding or looking to buy, keep your eyes on the quarterly "churn" rates. If people start leaving the platform because they can get branded Wegovy easier or cheaper elsewhere, Hims is in trouble. But if they can successfully launch their "Longevity" specialty in 2026 with metabolic treatments and diagnostics, they might just prove the doubters wrong.
The legal battle with the FDA isn't over. In late 2025, the FDA sent a warning letter to the "Hers" side of the business regarding how they marketed compounded semaglutide. They’re under a microscope.
Actionable Insights for Investors
If you're looking at the hims and hers stock price as a potential entry point, here is how to handle the next few months:
- Watch the 10-K filings for "Internal Controls": Management has admitted their financial reporting controls aren't perfect yet. For a company this size, that's a red flag that needs to be cleared.
- Monitor the FDA Shortage List: This is the "God Switch" for their weight loss revenue. If a drug comes off the list, Hims has to pivot immediately to "personalized" versions, which is a harder sell.
- Check the Marketing Spend: If revenue is growing but marketing costs are growing faster, the business model isn't scaling—it's just buying customers. Look for "Operating Leverage" in the earnings calls.
- Diversify your entry: Don't go all in at $32. This stock has shown it can swing 10% in a day on a single tweet or news report. Using dollar-cost averaging here is probably the only way to sleep at night.
Hims & Hers is no longer just a "pill by mail" company. It's a massive, vertically integrated experiment in digital health. Whether that experiment pays off depends entirely on their ability to stay one step ahead of the regulators and two steps ahead of the big pharmaceutical giants like Eli Lilly and Novo Nordisk. It's going to be a bumpy year.
Next Steps for Your Research
To get a better handle on the risk, you should look into the specific language of the SAFE Drugs Act of 2025. This bipartisan bill is specifically designed to crack down on the exact type of compounding Hims relies on. Understanding the "loopholes" they plan to use—like the 503A "individualized prescription" route—is key to knowing if their revenue is safe or about to vanish.