Is HIMS a good stock to buy? We came across a bearish thesis on Hims & Hers Health, Inc. on Valueinvestorsclub.com by Pridwen. In this article, we will summarize the bears’ thesis on HIMS. Hims & Hers Health, Inc.’s share was trading at $27.51 as of June 2nd. HIMS’s trailing and forward P/E were 57.14 and 58.82 respectively according to Yahoo Finance.
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Hims & Hers Health (HIMS) is a leading consumer telehealth platform focused on treatments for erectile dysfunction, hair loss, hormone therapy, and weight loss, but the bearish thesis argues that the company’s recent growth has been driven largely by an unsustainable GLP-1 compounding business rather than durable core fundamentals.
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HIMS benefited enormously from the GLP-1 shortage period, with revenue growth exceeding 100% and profitability expanding rapidly, but critics contend that much of this growth occurred while operating in a legal gray area after the FDA shortage designation ended.
Following disputes with Novo Nordisk, including allegations surrounding compounded semaglutide offerings, HIMS ultimately entered a new partnership that requires transitioning customers toward branded GLP-1 products. While the market viewed the agreement positively and shares rose roughly 50%, bears believe investors are underestimating its economic impact. Compounded GLP-1 products historically generated highly attractive margins, and the shift to branded therapies could materially reduce gross profit per subscriber while also increasing churn as customers encounter lower-cost alternatives offered directly by drug manufacturers.
At the same time, HIMS’ legacy telehealth business is viewed as increasingly commoditized, with limited differentiation, rising customer acquisition costs, and intensifying competition from numerous new entrants. Bears argue management has obscured this underlying slowdown through reduced disclosure and acquisitions, including Zava and the recently announced Eucalyptus transaction.
They expect the company’s ambitious 2026 guidance to prove difficult to achieve, with earnings and profitability falling below consensus expectations as the GLP-1 transition unfolds. Trading at elevated valuation multiples, HIMS is viewed as vulnerable to significant downside, with the thesis estimating potential declines of 38% in a base case and as much as 60% in a downside scenario, though high short interest and acquisition-driven growth could create intermittent upside and short-squeeze risk.
Previously, we covered a bullish thesis on Hims & Hers Health, Inc. (HIMS) by Oliver | MMMT Wealth in May 2025, which highlighted the company’s exceptional growth, expanding profitability, rising subscriber monetization, and substantial long-term upside from personalized healthcare and weight-loss products. HIMS’s stock price has depreciated by approximately 47.45% since our coverage. Pridwen shares a contrarian view but emphasizes that GLP-1-driven growth is unsustainable and future earnings expectations are overly optimistic.
Hims & Hers Health, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held HIMS at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HIMS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
