It was the ultimate "growth at all costs" darling. If you glanced at Hims & Hers Health (HIMS) back in early 2024, the story felt invincible. They were the guys making telehealth cool, shipping sleek bottles of hair loss pills and ED meds to a generation that hated going to the doctor. Then the GLP-1 craze hit, and suddenly Hims wasn't just a lifestyle brand; it was a weight-loss powerhouse.
But walk into the market today, in January 2026, and the vibe has shifted. Hard.
The stock is currently hovering around $32, a far cry from its 52-week highs. If you're holding a bag or just watching from the sidelines, the question is obvious: why is hims stock down when they seem to be everywhere?
The truth is a messy cocktail of regulatory crackdowns, "the Amazon effect," and some pretty aggressive selling from the people who actually run the place.
The GLP-1 Party Is Facing a Massive Hangover
We have to talk about the semaglutide in the room. Hims saw an astronomical rise because they started offering compounded GLP-1 injections—basically a custom-mixed version of the active ingredient in Ozempic and Wegovy.
For a while, it was a gold mine.
Because the brand-name drugs were in a massive shortage, the FDA allowed compounding pharmacies to fill the gap. Hims jumped in with lower prices and easy access. But the FDA eventually did what the FDA does: they updated their shortage list. By mid-2025, the official shortages for many of these "miracle" weight-loss drugs began to resolve.
When the shortage ends, the legal loophole for mass-compounding starts to close.
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The market is terrified that Hims’ weight-loss revenue—which analysts at BofA Securities and others have flagged as a primary growth driver—is about to evaporate. If they can’t sell the "cheap" version because the brand-name supply is back, where does that leave their growth?
Big Pharma and Federal Warnings
It isn't just about supply, though. It’s about the heat.
In late 2025, the FDA sent a fairly pointed warning letter to Hims & Hers regarding how they were marketing these compounded drugs. The agency essentially said, "Stop implying these are the same as FDA-approved Ozempic."
Then you have Novo Nordisk. They didn't just sit back. They went on the offensive, publicly distancing themselves from Hims and emphasizing that they have no collaboration with these telehealth platforms. When the people who own the patent for the most popular drug in the world start pointing fingers at you, Wall Street gets twitchy.
The "Amazon" Problem and Margin Squeeze
Have you looked at what Amazon is doing lately?
They launched a "low, upfront pricing" model for telehealth that targets the exact same demographics as Hims. When a trillion-dollar gorilla decides to offer $19-a-month hair loss treatments, your "premium lifestyle brand" suddenly looks a lot more vulnerable.
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Hims is spending a fortune to keep its subscribers. Their marketing budget is massive. In fact, their reliance on ads is so heavy that Zacks recently highlighted it as a major risk.
Here is the kicker:
- Customer Acquisition Cost (CAC) is rising.
- Churn (people cancelling subscriptions) is a constant battle.
- Net Income took a hit in Q3 2025, dropping to about $16 million compared to much higher figures (on a tax-adjusted basis) previously.
Basically, it's getting more expensive to find new customers, and the ones they have are being tempted by cheaper options.
Why the Insiders are Bailing
This is the part that really stings for retail investors. While the CEO, Andrew Dudum, has been vocal about the long-term vision, the SEC filings tell a different story.
Throughout December 2025 and early January 2026, high-level executives have been unloading shares like they’re going out of style.
- CFO Yemi Okupe sold thousands of shares in multiple tranches.
- COO Mike Chi and Chief Medical Officer Patrick Carroll also executed significant sales.
When the entire C-suite is hitting the "sell" button at $35 or $36, it's hard to convince the public that the stock is "undervalued" at $32. It signals that even the people in the room think the short-term peak might be behind them.
The 2026 Investment "Reset"
Management has tried to frame this as a "big investment year." They are pouring money into:
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- Verticalization: Building their own labs so they don't rely on third parties.
- International Expansion: Pushing into Canada and the UK.
- New Verticals: Moving into hormone health and "longevity" treatments.
BofA Securities actually lowered their price target to $29.00 recently because they don't think Hims can hit the aggressive revenue targets the "Street" expects for 2026. Investors hate the phrase "investment year." It usually means "we’re going to spend all our profit and hope it works out in 2028."
Is the Stock Actually a Bargain Now?
Look, it’s not all doom and gloom. If you look at Simply Wall St’s DCF (Discounted Cash Flow) models, they argue the stock is technically undervalued, with an intrinsic value closer to $63.
Their revenue is still growing at double digits. They have nearly 2.5 million subscribers. That’s not a failing business; it’s a maturing one.
The problem is the valuation. The stock was priced for perfection, and now it’s being priced for reality. Reality involves lawsuits, regulatory hurdles, and a very grumpy FDA.
What to do next
If you're looking at Hims and wondering if this is a "buy the dip" moment, you need to watch three specific things:
- Watch the FDA Shortage List: The second the GLP-1 shortage is officially declared "fully resolved," Hims will have to pivot their weight-loss strategy fast. If they can't, expect more downside.
- Monitor the Margins: Keep an eye on the "Adjusted EBITDA" in the next earnings call. If marketing costs keep eating the profits, the "growth" isn't actually worth much to you as a shareholder.
- Check Insider Activity: Stop listening to the hype and start watching the Form 4 filings. If the selling stops and the executives start buying their own stock again, that's your green light.
Hims is currently a "show me" story. They’ve proven they can grow; now they have to prove they can survive a world where the easy wins are gone.