What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) jumped 4.9% in the morning session after it continued a rally from the previous day fueled by strong revenue guidance and supportive analyst actions.
The stock gained over 8% after the company affirmed its fiscal year 2025 revenue forecast of $2.3 to $2.4 billion and provided a third-quarter revenue outlook between $570 million and $590 million. The positive momentum was also supported by Deutsche Bank, which raised its price target on the stock to $48, though it maintained a “Hold” rating.
Adding to the news, BofA Securities reiterated its "Underperform" rating on Thursday but noted it was "incrementally positive" on the future of the company's GLP-1 franchise following recent developments. This commentary, despite the rating, appeared to provide further support for the stock's ongoing upward trend.
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What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 96 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock dropped 6.4% after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
Hims & Hers Health is up 86.6% since the beginning of the year, but at $47.03 per share, it is still trading 31.6% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $4,375.
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