Crude Oil Falls 1%; US Services PMI Declines In June
U.S. Stock Market Performance: U.S. stocks showed mixed results with the Nasdaq Composite gaining over 50 points, while the S&P Global US services PMI fell to 53.1 in June, slightly above market expectations.
Sector Movements and Notable Stocks: Consumer discretionary shares rose by 1.6%, while health care stocks declined. Significant stock movements included Impact BioMedical's shares surging 386% due to a merger announcement, and Hims & Hers Health's shares dropping 28% after a collaboration termination.
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- Strong Sales Growth: Hims & Hers reported a 28% year-over-year increase in Q4 sales, reaching $617.8 million, which is near the high end of its guidance range of $605 million to $625 million, indicating robust market performance.
- Sustained User Growth: The company has seen a 13% increase in subscribers, exceeding 2.51 million, while monthly revenue per subscriber rose 11% year-over-year to $83, demonstrating success in customer acquisition and retention strategies.
- Margin Pressure: Despite significant contributions from international markets, Hims & Hers experienced a 500 basis point decline in gross margin to 72%, reflecting cost challenges as the company expands its product offerings and markets.
- Cautious Future Outlook: The company forecasts 2026 revenue between $2.7 billion and $2.9 billion, and while its Q1 guidance fell short of the $647.9 million consensus, it remains optimistic about growth in international markets and plans to acquire Eucalyptus to enhance its presence outside the U.S.
Market Trends: Investors are shifting from technology stocks to traditional defensive assets like gold, with evidence suggesting a rotation towards blue-chip stocks as tech stocks remain under pressure.
Earnings Reports: Anticipation surrounds upcoming earnings reports, particularly from companies like NVIDIA and PayPal, with analysts highlighting strong performance expectations and potential growth opportunities.
AI Sector: The AI infrastructure trade continues to be a significant market driver, with investors advised to focus on key stocks within the AI supply chain that are expected to perform well.
Investment Opportunities: Analysts recommend looking for undervalued stocks, particularly in the retail sector, as well as identifying potential long-term opportunities amidst market volatility and recent sell-offs.
- Board Investigation: The Law Offices of Howard G. Smith announced an investigation into whether the board of directors of Hims & Hers Health, Inc. breached its fiduciary duties to shareholders, which could negatively impact corporate governance.
- Product Withdrawal Impact: On February 7, 2026, The New York Times reported that Hims would cease selling its version of the weight loss drug Wegovy, potentially leading to a decline in market share and affecting company revenues.
- Technology Concerns: A former FDA commissioner stated that Hims' technology differs from that of Novo Nordisk and noted a lack of clinical trial data supporting the product's efficacy, which may undermine investor confidence.
- Shareholder Rights Protection: The law firm is urging shareholders who purchased Hims shares before December 2025 to contact them to discuss potential legal rights, demonstrating a commitment to protecting shareholder interests.
- Significant Stock Decline: Hims & Hers has seen its stock price cut in half year-to-date and down approximately 70% over the past year, reflecting market concerns about its growth prospects, particularly regarding regulatory issues surrounding GLP-1 weight loss drugs.
- Sales Performance Growth: Despite challenges, the company reported a 28% year-over-year increase in fourth-quarter sales to $617.8 million, nearing its guidance range of $605 million to $625 million, demonstrating resilience in its core business.
- User Growth Notable: The number of subscribers grew by 13% to over 2.51 million, with monthly revenue per subscriber increasing by 11% to $83, indicating strong customer preference for its personalized subscription services, which will help stabilize future revenues.
- International Market Potential: The company forecasts revenue between $2.7 billion and $2.9 billion for 2026, with international expansion viewed as a key growth driver, although it faces margin pressure; however, its higher-margin non-weight loss offerings will support overall financial performance.
- Significant User Growth: By 2025, Hims & Hers' subscriber base surged from 300,000 in 2020 to 2.5 million, with an addition of 280,000 new subscribers, showcasing the success of its digital direct-to-consumer model and enhancing the company's sustainable profitability.
- Innovative Revenue Model: Hims & Hers has established an annuity-like income stream through its subscription model, with customers consistently purchasing multiple products, driving stable revenue growth and future potential for expanding its product offerings to meet market demand.
- Market Competition Challenges: While Hims & Hers benefited from a supply shortage of Novo Nordisk's GLP-1 drugs and launched copycat versions, Novo Nordisk has filed a lawsuit against it, which may impact short-term sales; however, the long-term growth potential remains strong.
- Investor Focus: With a price-to-earnings ratio of approximately 29x, value investors may be disinterested, yet growth investors are optimistic about its profitability and market expansion potential, indicating market recognition of its future development.
- Significant User Growth: By 2025, Hims & Hers is projected to reach 2.5 million subscribers, a 733% increase from 300,000 in 2020, indicating the effectiveness of its digital marketing strategy in attracting new customers and enhancing retention.
- Innovative Revenue Model: The subscription model creates an annuity-like income stream, with 280,000 new subscribers in 2025 expected to further drive revenue growth, breaking away from traditional pharmaceutical sales methods and enhancing market competitiveness.
- Market Expansion Plans: The company aims to broaden its product offerings, and as brand recognition increases in the consumer market, repeat purchases from existing users and new subscriber additions will accelerate revenue growth, creating a positive feedback loop.
- Competitive Challenges and Opportunities: Despite facing legal challenges from Novo Nordisk, Hims & Hers has the potential to disrupt traditional drug sales through its direct sales model, and while short-term competitive pressures may exist, the long-term growth opportunities remain significant.










