Stock Futures Plunge Sharply as Oil Prices Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy HIMS?
Stock futures have moved sharply lower ahead of the open as a dramatic surge in oil prices tied to the escalating conflict involving Iran ripples through financial markets. Crude prices jumped above $100 per barrel and briefly approached roughly $120, the highest levels since 2022, after attacks on energy infrastructure and disruptions to shipping routes heightened fears of a global supply shock. The possibility that tanker traffic through the Strait of Hormuz could remain disrupted has forced traders to rapidly price in a geopolitical risk premium across energy markets.Equity markets reacted negatively to the sudden energy shock and indices fell across Asia and Europe as investors weighed the inflationary implications of higher fuel costs and the risk that the conflict could drag on. Some markets experienced particularly severe declines, with Asian stocks sliding sharply and South Korea's Kospi briefly halting trading after a steep drop, highlighting the speed of the risk-off move.Energy prices feed directly into transportation, manufacturing, and consumer costs, meaning a sustained spike in crude could push inflation expectations higher again and complicate central bank policy. At the same time, economic data released late last week signaled some cooling in the labor market, raising fears of a stagflationary environment where growth slows while price pressures rise.In pre-market trading, S&P 500 futures fell 1.13%, Nasdaq futures fell 1.22% and Dow futures fell 1.26%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Hims & Hersup 50% after entering into an agreement with Novo Nordiskthat will bring Ozempic injections and Wegovy pills and injections to the platform later this monthXenon Pharmaceuticalsup 48% after announcing its X-TOLE2 study of azetukalner in focal onset seizures met its primary endpointDianthusup 24% after reporting an early GO decision based on an interim responder analysis in the Phase 3 CAPTIVATE trial of claseprubart in Chronic Inflammatory Demyelinating Polyneuropathy, CIDPLive Nationup 5% after Bloombergthe company is close to settling a federal antitrust lawsuit in a deal that would avoid the sale of its Ticketmaster unitApplied Optoelectronicsup 3% after announcing it received its first volume order for its 1.6T data center transceivers from one of its long-term major hyperscale customers to boost its network bandwidth for AI workloadUP AFTER EARNINGS -Heritage Insuranceup 6%DOWN AFTER EARNINGS -Beta Technologiesdown 3%LOWER -Jefferies Financialdown 3% after Morgan Stanley downgraded the stock to Equal Weight with a price target of $49, down from $78Lamb Westondown 1% after Starboard Value built a stake in the company and has been pushing to company to accelerate improvements and cost cuttingStarbucksdown 1% after Wolfe Research downgraded shares to Peer Perform after assuming coverage of the name
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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: 15.740
Low
16.50
Averages
32.95
High
60.00
Current: 15.740
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.
Citi Upgrades Hims & Hers to Neutral Amid Novo Nordisk Deal
- Rating Upgrade: Citi upgraded Hims & Hers Health from sell to neutral, primarily due to the agreement with Novo Nordisk for GLP-1 drug sales, which mitigates several risks facing the company and reflects a renewed market confidence in its future performance.
- Price Target Increase: Citi raised the price target for Hims & Hers from $13.25 to $24, indicating approximately 8% upside based on the March 9 close, which reflects optimistic expectations regarding the company's new business model and revenue potential.
- Pricing Expectations: Although Hims & Hers has yet to release pricing for Wegovy and Ozempic, analyst Grosslight anticipates that the price will be $100 higher per month than the cash price through Novo's NovoCare site, as customers will have access to medical providers and nutrition and fitness advice, enhancing its competitive position in the market.
- Revenue Risk Warning: Grosslight cautioned that the requirement for Hims & Hers to cease mass compounding of semaglutide could lead to a substantial decline in revenue and adjusted EBITDA, indicating potential financial pressures under the new business model.
See More
Short Squeeze Risk Intensifies for Stock
- Short Squeeze Mechanism: A short squeeze occurs when a heavily shorted stock experiences a rapid price increase, leading to significant volatility that can result in investor losses and impact market confidence.
- Escalating Losses for Short Sellers: As the stock price rises, short sellers face increasing losses, prompting some to panic and buy back shares, which further drives up the price and creates a snowball effect that may destabilize the market.
- Historical Squeeze Review: Since January of last year, there have been four short squeezes, with the first doubling the stock price and the subsequent three increasing it by about 50%, all followed by rapid crashes, indicating high market volatility.
- Future Trend Prediction: If the current short squeeze drives Hims' stock price higher, similar market behaviors may follow, necessitating caution from investors regarding potential price collapse risks.
See More
U.S. Stocks Close Sharply Lower Amid Mixed Trading
- Dow Jones Decline: On Monday, the Dow Jones index fell over 300 points to close at 47,153.16, a drop of 0.73%, indicating growing concerns about the economic outlook that could dampen investor confidence.
- NASDAQ Resilience: In contrast to the broader market, the NASDAQ rose by 0.11% to 22,411.59, demonstrating relative strength in technology stocks, which may attract more capital into this sector amid market volatility.
- ZIM Earnings Miss: ZIM Integrated Shipping Services Ltd. reported a fourth-quarter loss of $0.82 per share, missing the analyst consensus of $0.57, while quarterly sales of $1.485 billion also fell short of the $1.503 billion estimate, highlighting challenges the company faces.
- Commodity Market Fluctuations: Oil prices increased by 3.8% to $94.34, while gold prices decreased by 0.7% to $5,124.50, reflecting market sensitivity to inflation and economic data that could influence future investment decisions.
See More
US Stocks Decline Amid Surge in Oil Prices
- Oil Price Surge Impacts Markets: The WTI crude oil price surged over 9% due to escalating tensions in the Middle East, temporarily exceeding $100 per barrel, leading to a 0.7% drop in the S&P 500 and a 1.0% decline in the Dow Jones, reflecting market concerns over inflation and economic slowdown.
- Weak Economic Data: The US economy reported a loss of 92,000 jobs in February, with the unemployment rate unexpectedly rising by 0.1% to 4.4%, alongside a 0.2% month-over-month decline in January retail sales, intensifying market fears of an economic slowdown and further pressuring stock performance.
- Positive Earnings Outlook: Despite the overall market decline, over 95% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, indicating strong corporate fundamentals that may provide support for future market performance.
- Airline Stocks Hit Hard: With soaring oil prices, airline stocks such as United Airlines, American Airlines, and Alaska Air fell over 4%, highlighting the direct impact of high oil prices on airline profitability, which could lead to a decline in overall industry earnings.
See More
Oil Price Surge Drives Significant Stock Movements
- Oil Price Impact: Oil prices surged past $110 per barrel due to the ongoing Iran conflict, leading Chevron to hit an all-time high, while Talos Energy rose by 5%, and ConocoPhillips and Northern Oil gained 2% and 3% respectively, indicating strong performance among oil companies in a high-price environment.
- Hims & Hers Health Surge: The company's stock soared 39% after striking a deal with Novo Nordisk to sell its weight-loss drug, resolving a lawsuit over a copycat version, which is expected to significantly enhance its market share and brand reputation.
- Live Nation Settlement Near: Live Nation's shares rose 6% as it nears a settlement with the Department of Justice regarding monopoly allegations in the live concert industry, which, if successful, will stabilize and expand its future business operations.
- United Therapeutics Buyback Plan: The pharmaceutical company's shares increased by over 8% after its board authorized a $2 billion stock repurchase plan, with $1.5 billion allocated for accelerated buybacks, which is expected to boost investor confidence and enhance shareholder value.
See More
Hims & Hers Health Soars After Novo Nordisk Agreement
- Stock Surge: Shares of Hims & Hers Health skyrocketed by 39.39% following the agreement with Novo Nordisk, with the current price at $6.20 and a market cap of $3.6 billion, reflecting strong market optimism about future growth prospects.
- Relationship Reconciliation: The agreement allows Hims to sell Ozempic injections and Wegovy pills on its platform, marking a significant improvement in the previously strained relationship with Novo Nordisk and eliminating major legal risks for Hims.
- Market Opportunity: Although Hims may face lower gross margins, the partnership with Novo Nordisk is expected to drive revenue growth, with a recent 28% increase in revenue indicating strong potential for international market expansion.
- Cautious Investment: Despite Hims trading at a forward P/E ratio below 20 and maintaining rapid growth, investors should approach with caution due to the historical volatility of its relationship with Novo Nordisk, recommending only smaller positions to mitigate risk.
See More
Citi Upgrades Hims & Hers to Neutral Amid Novo Nordisk Deal
- Rating Upgrade: Citi upgraded Hims & Hers Health from sell to neutral, primarily due to the agreement with Novo Nordisk for GLP-1 drug sales, which mitigates several risks facing the company and reflects a renewed market confidence in its future performance.
- Price Target Increase: Citi raised the price target for Hims & Hers from $13.25 to $24, indicating approximately 8% upside based on the March 9 close, which reflects optimistic expectations regarding the company's new business model and revenue potential.
- Pricing Expectations: Although Hims & Hers has yet to release pricing for Wegovy and Ozempic, analyst Grosslight anticipates that the price will be $100 higher per month than the cash price through Novo's NovoCare site, as customers will have access to medical providers and nutrition and fitness advice, enhancing its competitive position in the market.
- Revenue Risk Warning: Grosslight cautioned that the requirement for Hims & Hers to cease mass compounding of semaglutide could lead to a substantial decline in revenue and adjusted EBITDA, indicating potential financial pressures under the new business model.
See More
Short Squeeze Risk Intensifies for Stock
- Short Squeeze Mechanism: A short squeeze occurs when a heavily shorted stock experiences a rapid price increase, leading to significant volatility that can result in investor losses and impact market confidence.
- Escalating Losses for Short Sellers: As the stock price rises, short sellers face increasing losses, prompting some to panic and buy back shares, which further drives up the price and creates a snowball effect that may destabilize the market.
- Historical Squeeze Review: Since January of last year, there have been four short squeezes, with the first doubling the stock price and the subsequent three increasing it by about 50%, all followed by rapid crashes, indicating high market volatility.
- Future Trend Prediction: If the current short squeeze drives Hims' stock price higher, similar market behaviors may follow, necessitating caution from investors regarding potential price collapse risks.
See More
U.S. Stocks Close Sharply Lower Amid Mixed Trading
- Dow Jones Decline: On Monday, the Dow Jones index fell over 300 points to close at 47,153.16, a drop of 0.73%, indicating growing concerns about the economic outlook that could dampen investor confidence.
- NASDAQ Resilience: In contrast to the broader market, the NASDAQ rose by 0.11% to 22,411.59, demonstrating relative strength in technology stocks, which may attract more capital into this sector amid market volatility.
- ZIM Earnings Miss: ZIM Integrated Shipping Services Ltd. reported a fourth-quarter loss of $0.82 per share, missing the analyst consensus of $0.57, while quarterly sales of $1.485 billion also fell short of the $1.503 billion estimate, highlighting challenges the company faces.
- Commodity Market Fluctuations: Oil prices increased by 3.8% to $94.34, while gold prices decreased by 0.7% to $5,124.50, reflecting market sensitivity to inflation and economic data that could influence future investment decisions.
See More
US Stocks Decline Amid Surge in Oil Prices
- Oil Price Surge Impacts Markets: The WTI crude oil price surged over 9% due to escalating tensions in the Middle East, temporarily exceeding $100 per barrel, leading to a 0.7% drop in the S&P 500 and a 1.0% decline in the Dow Jones, reflecting market concerns over inflation and economic slowdown.
- Weak Economic Data: The US economy reported a loss of 92,000 jobs in February, with the unemployment rate unexpectedly rising by 0.1% to 4.4%, alongside a 0.2% month-over-month decline in January retail sales, intensifying market fears of an economic slowdown and further pressuring stock performance.
- Positive Earnings Outlook: Despite the overall market decline, over 95% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, indicating strong corporate fundamentals that may provide support for future market performance.
- Airline Stocks Hit Hard: With soaring oil prices, airline stocks such as United Airlines, American Airlines, and Alaska Air fell over 4%, highlighting the direct impact of high oil prices on airline profitability, which could lead to a decline in overall industry earnings.
See More
Oil Price Surge Drives Significant Stock Movements
- Oil Price Impact: Oil prices surged past $110 per barrel due to the ongoing Iran conflict, leading Chevron to hit an all-time high, while Talos Energy rose by 5%, and ConocoPhillips and Northern Oil gained 2% and 3% respectively, indicating strong performance among oil companies in a high-price environment.
- Hims & Hers Health Surge: The company's stock soared 39% after striking a deal with Novo Nordisk to sell its weight-loss drug, resolving a lawsuit over a copycat version, which is expected to significantly enhance its market share and brand reputation.
- Live Nation Settlement Near: Live Nation's shares rose 6% as it nears a settlement with the Department of Justice regarding monopoly allegations in the live concert industry, which, if successful, will stabilize and expand its future business operations.
- United Therapeutics Buyback Plan: The pharmaceutical company's shares increased by over 8% after its board authorized a $2 billion stock repurchase plan, with $1.5 billion allocated for accelerated buybacks, which is expected to boost investor confidence and enhance shareholder value.
See More
Hims & Hers Health Soars After Novo Nordisk Agreement
- Stock Surge: Shares of Hims & Hers Health skyrocketed by 39.39% following the agreement with Novo Nordisk, with the current price at $6.20 and a market cap of $3.6 billion, reflecting strong market optimism about future growth prospects.
- Relationship Reconciliation: The agreement allows Hims to sell Ozempic injections and Wegovy pills on its platform, marking a significant improvement in the previously strained relationship with Novo Nordisk and eliminating major legal risks for Hims.
- Market Opportunity: Although Hims may face lower gross margins, the partnership with Novo Nordisk is expected to drive revenue growth, with a recent 28% increase in revenue indicating strong potential for international market expansion.
- Cautious Investment: Despite Hims trading at a forward P/E ratio below 20 and maintaining rapid growth, investors should approach with caution due to the historical volatility of its relationship with Novo Nordisk, recommending only smaller positions to mitigate risk.
See More
