HIMS Stock Crashes 30% in a Day: Time to Buy the Dip?

Core Viewpoint - Hims & Hers Health has experienced significant growth but faced a major setback due to the termination of its partnership with Novo Nordisk, impacting its stock performance [1][2][3] Company Overview - Hims & Hers Health has established a direct-to-consumer health platform focusing on hair loss, mental health, and weight loss, achieving strong revenue growth and stock returns [1] - The company has seen its stock price increase over 150% on two occasions in early 2025, but it recently dropped over 30% following the partnership news [1][2] Financial Performance - Hims & Hers Health is projected to grow earnings at 36.5% annually over the next three to five years, with sales expected to rise by 58.5% this year and 22.6% next year [5] - Current Zacks Consensus Estimates indicate revenues of $2.34 billion for the current year and $2.87 billion for the next year, reflecting year-over-year growth of 58.48% and 22.63% respectively [7] - The company trades at a premium valuation of 41x next year's earnings, which is considered reasonable given its growth forecasts [5] Market Landscape - The GLP-1 weight loss treatment market is projected to exceed $150 billion by 2035, indicating substantial long-term growth potential despite the recent partnership loss [10] - Novo Nordisk and Eli Lilly, major players in the GLP-1 market, have faced challenges, with Novo Nordisk's shares down over 50% from their 2024 highs [9] Strategic Considerations - The termination of the partnership with Novo Nordisk raises concerns, but Hims & Hers Health remains a fast-growing company in a compelling industry [3][10] - Investors may consider applying a three-day rule to mitigate risks associated with the recent volatility before making investment decisions [11]