GRAIL Shares Plummet After Clinical Trial Failure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy HIMS?
Source: seekingalpha
- Trial Failure: GRAIL (GRAL) shares plummeted on Thursday after its NHS-Galleri trial failed to meet its primary endpoint, undermining confidence in its multi-cancer screening test just two weeks after launching Galleri on the Hims & Hers (HIMS) platform.
- Large-Scale Data: The trial involved over 140,000 participants in the U.K. National Health Service and did not demonstrate a significant reduction in severe cancer cases, which could impact the FDA approval process, although analysts believe the risk of FDA approval remains low.
- Market Reaction: Hims & Hers launched Galleri with a $250 discount to attract customers, but the trial failure may weaken market confidence in the product, potentially affecting sales growth expectations.
- Future Outlook: Despite challenges, GRAIL reiterated its 2026 sales growth guidance for Galleri at 22%-32% and plans to expand its sales force to mitigate the impact of the NHS-Galleri trial, indicating the company's confidence in future market opportunities.
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Analyst Views on HIMS
Wall Street analysts forecast HIMS stock price to rise
12 Analyst Rating
3 Buy
6 Hold
3 Sell
Hold
Current: 15.460
Low
16.50
Averages
32.95
High
60.00
Current: 15.460
Low
16.50
Averages
32.95
High
60.00
About HIMS
Hims & Hers Health, Inc. provides a consumer-first platform, which helps customers to fulfill their health and wellness needs. Its platform includes access to a provider network, a clinically focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. Its digital platform enables access to treatments for a range of chronic conditions, including those related to sexual health, hair loss, dermatology, mental health, and weight loss. It connects patients to licensed healthcare professionals who can prescribe medications when appropriate and prescriptions are fulfilled online through licensed pharmacies on a subscription basis. It also offers access to a range of health and wellness products designed to meet individual needs, which can include curated prescription and non-prescription products. Through its mobile applications, consumers can access a range of educational programs, wellness content, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hims & Hers Health Reports Strong Q4 2025 Earnings with Strategic Expansion Plans
- Significant Revenue Growth: Hims & Hers reported Q4 2025 revenue of $618 million, representing a 28% year-over-year increase, with full-year revenue reaching $2.35 billion, marking a remarkable 59% growth, indicating strong momentum in the healthcare management sector.
- User Base Expansion: By year-end, the platform surpassed 2.5 million subscribers, with monthly revenue per average subscriber increasing by 11% year-over-year to $83, demonstrating success in user acquisition and retention, further solidifying its market position.
- International Market Expansion: Through acquisitions of ZAVA, Livewell, and the upcoming acquisition of Eucalyptus, the company aims to scale its international business to over $1 billion in revenue within three years, with at least $200 million in revenue contributions expected from international markets in 2026, showcasing its ambitious globalization strategy.
- Optimistic Future Outlook: Management anticipates Q1 2026 revenue in the range of $600 million to $625 million, with full-year revenue projected between $2.7 billion and $2.9 billion, reflecting a year-over-year increase of 15% to 24%, alongside adjusted EBITDA expectations of $300 million to $375 million, highlighting confidence in future growth.
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Hims & Hers Stock Downgraded Amid Weak Outlook
- Rating Downgrade: BTIG downgraded Hims & Hers from ‘Buy’ to ‘Neutral’ due to the company’s ‘disappointing’ Q4 results and ‘weak’ Q1 outlook, which is likely to undermine investor confidence moving forward.
- Price Target Cuts: Morgan Stanley slashed its price target on HIMS by nearly 50% from $40 to $21, reflecting significant concerns about the company’s financial outlook, particularly for fiscal year 2026, which is heavily back-weighted.
- Increased Regulatory Risks: Hims & Hers confirmed an SEC probe regarding compounded Semaglutide, which could elevate legal and regulatory risks, potentially impacting the company’s market performance and investor sentiment.
- Market Reaction: Despite HIMS stock hitting an intra-day low of $13.74 on Tuesday, retail investor interest surged, leading to a 0.8% recovery by mid-afternoon, indicating volatility and uncertainty in market sentiment surrounding the stock.
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Hims & Hers Reports Mixed Q4 Financial Results
- Revenue Miss: Hims & Hers reported Q4 revenue of $617.82 million, falling short of analyst expectations of $619.22 million, indicating competitive pressures that may affect investor confidence moving forward.
- Earnings Beat: The company posted earnings of $0.08 per share, exceeding estimates of $0.03, demonstrating effective cost management and profitability, which could attract more investor interest.
- Strong Subscriber Growth: With over 2.5 million subscribers relying on Hims & Hers for personalized healthcare, the company showcases significant market potential in consumer health, likely leading to increased market share in the future.
- Cautious Outlook: The company expects Q1 revenue between $600 million and $625 million, below analyst estimates of $653.12 million, while projecting full-year 2026 revenue of $2.7 billion to $2.9 billion, slightly above market expectations, reflecting a cautious approach to future growth.
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- Money Flow Analysis: With portfolios heavily concentrated in the Magnificent Seven stocks, early trading shows positive money flows into Microsoft, Alphabet, and Apple, indicating sustained market optimism towards these tech giants.
- ETF Performance Monitoring: Early trading reveals positive money flows in the SPDR S&P 500 ETF and Invesco QQQ Trust, suggesting strong investor confidence in the overall market and tech stocks, which may drive related indices higher.
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US Stocks Rebound Slightly as Software Shares Recover
- Market Rebound: The S&P 500 index rose by 0.17%, the Dow Jones Industrial Average increased by 0.64%, and the Nasdaq 100 index climbed by 0.47%, indicating a recovery after Monday's sharp declines, reflecting renewed investor confidence in software companies.
- Trade Uncertainty: President Trump's new 10% global tariffs took effect today, and concerns about a potential increase to 15% amid Supreme Court rulings may negatively impact the stock market, particularly with rising geopolitical risks.
- Home Price Index Growth: The US December S&P Composite-20 home price index rose 0.47% month-over-month and 1.38% year-over-year, surpassing expectations, suggesting resilience in the housing market that could support economic recovery and influence investor sentiment.
- Corporate Earnings Optimism: Over 80% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, indicating strong corporate performance that may drive further stock market gains.
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HIMS & HERS HEALTH STOCKS DROP 8.8% FOLLOWING LOWER THAN EXPECTED Q1 SALES FORECAST
- Sales Decline: HIMS & HERS reported an 8.8% drop in sales for Q1, falling below initial forecasts.
- Market Response: The company's performance has raised concerns among investors regarding future growth prospects.
See More
Hims & Hers Health Reports Strong Q4 2025 Earnings with Strategic Expansion Plans
- Significant Revenue Growth: Hims & Hers reported Q4 2025 revenue of $618 million, representing a 28% year-over-year increase, with full-year revenue reaching $2.35 billion, marking a remarkable 59% growth, indicating strong momentum in the healthcare management sector.
- User Base Expansion: By year-end, the platform surpassed 2.5 million subscribers, with monthly revenue per average subscriber increasing by 11% year-over-year to $83, demonstrating success in user acquisition and retention, further solidifying its market position.
- International Market Expansion: Through acquisitions of ZAVA, Livewell, and the upcoming acquisition of Eucalyptus, the company aims to scale its international business to over $1 billion in revenue within three years, with at least $200 million in revenue contributions expected from international markets in 2026, showcasing its ambitious globalization strategy.
- Optimistic Future Outlook: Management anticipates Q1 2026 revenue in the range of $600 million to $625 million, with full-year revenue projected between $2.7 billion and $2.9 billion, reflecting a year-over-year increase of 15% to 24%, alongside adjusted EBITDA expectations of $300 million to $375 million, highlighting confidence in future growth.
See More
Hims & Hers Stock Downgraded Amid Weak Outlook
- Rating Downgrade: BTIG downgraded Hims & Hers from ‘Buy’ to ‘Neutral’ due to the company’s ‘disappointing’ Q4 results and ‘weak’ Q1 outlook, which is likely to undermine investor confidence moving forward.
- Price Target Cuts: Morgan Stanley slashed its price target on HIMS by nearly 50% from $40 to $21, reflecting significant concerns about the company’s financial outlook, particularly for fiscal year 2026, which is heavily back-weighted.
- Increased Regulatory Risks: Hims & Hers confirmed an SEC probe regarding compounded Semaglutide, which could elevate legal and regulatory risks, potentially impacting the company’s market performance and investor sentiment.
- Market Reaction: Despite HIMS stock hitting an intra-day low of $13.74 on Tuesday, retail investor interest surged, leading to a 0.8% recovery by mid-afternoon, indicating volatility and uncertainty in market sentiment surrounding the stock.
See More
Hims & Hers Reports Mixed Q4 Financial Results
- Revenue Miss: Hims & Hers reported Q4 revenue of $617.82 million, falling short of analyst expectations of $619.22 million, indicating competitive pressures that may affect investor confidence moving forward.
- Earnings Beat: The company posted earnings of $0.08 per share, exceeding estimates of $0.03, demonstrating effective cost management and profitability, which could attract more investor interest.
- Strong Subscriber Growth: With over 2.5 million subscribers relying on Hims & Hers for personalized healthcare, the company showcases significant market potential in consumer health, likely leading to increased market share in the future.
- Cautious Outlook: The company expects Q1 revenue between $600 million and $625 million, below analyst estimates of $653.12 million, while projecting full-year 2026 revenue of $2.7 billion to $2.9 billion, slightly above market expectations, reflecting a cautious approach to future growth.
See More
Concerns Over BOJ Rate Hikes Impact Markets
- BOJ Developments: Japanese Prime Minister Takaichi's meeting with BOJ Governor Ueda, where concerns over rate hikes were expressed, highlights government vigilance regarding monetary policy changes, potentially impacting investor confidence and market liquidity.
- Money Flow Analysis: With portfolios heavily concentrated in the Magnificent Seven stocks, early trading shows positive money flows into Microsoft, Alphabet, and Apple, indicating sustained market optimism towards these tech giants.
- ETF Performance Monitoring: Early trading reveals positive money flows in the SPDR S&P 500 ETF and Invesco QQQ Trust, suggesting strong investor confidence in the overall market and tech stocks, which may drive related indices higher.
- Bitcoin Market Trends: Bitcoin is experiencing selling pressure, leading to a downturn in market sentiment, particularly affecting momentum-driven investors, which could influence their investment strategies and risk appetite.
See More
US Stocks Rebound Slightly as Software Shares Recover
- Market Rebound: The S&P 500 index rose by 0.17%, the Dow Jones Industrial Average increased by 0.64%, and the Nasdaq 100 index climbed by 0.47%, indicating a recovery after Monday's sharp declines, reflecting renewed investor confidence in software companies.
- Trade Uncertainty: President Trump's new 10% global tariffs took effect today, and concerns about a potential increase to 15% amid Supreme Court rulings may negatively impact the stock market, particularly with rising geopolitical risks.
- Home Price Index Growth: The US December S&P Composite-20 home price index rose 0.47% month-over-month and 1.38% year-over-year, surpassing expectations, suggesting resilience in the housing market that could support economic recovery and influence investor sentiment.
- Corporate Earnings Optimism: Over 80% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, indicating strong corporate performance that may drive further stock market gains.
See More
HIMS & HERS HEALTH STOCKS DROP 8.8% FOLLOWING LOWER THAN EXPECTED Q1 SALES FORECAST
- Sales Decline: HIMS & HERS reported an 8.8% drop in sales for Q1, falling below initial forecasts.
- Market Response: The company's performance has raised concerns among investors regarding future growth prospects.
See More
