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176 days

Hims & Hers Shares Plunge as Costs Tied to Weight-Loss Drugs Squeeze Margins

1. Q4 revenue nearly doubled to $481.14M and EPS rose to 11 cents. Sales beat estimates but margins declined. 2. Gross margin dropped from 83% to 77% due to cost spikes in new weight-loss offerings. This raised investor concerns. 3. Shares fell nearly 20% in extended trading despite strong revenue numbers. The market reacted sharply to margin compression. 4. Q1 revenue guidance of $520M–$540M is above consensus. FDA news on weight-loss drugs intensified worries on future margins.

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FAQ

Why Bearish?

While revenue and EPS beat estimates, falling margins and rising costs have negatively impacted investor sentiment. Historical precedents show margin compressions can lead to sharp short-term price drops.

How important is it?

The margin decline and rising costs combined with FDA supply news create significant investor uncertainty, making this news a major short-term influence on HIMS's price.

Why Short Term?

The immediate nearly 20% drop reflects short-term concerns. Although long-term growth may be possible with new offerings, near-term sentiment remains turbulent.

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