A specific type of irritation has been growing for years in the waiting rooms of traditional medical practices across the United States, the ones with the out-of-date magazines, the fluorescent lighting, and the scheduling process that necessitates a call during business hours. Not exactly rage. It’s more akin to a silent acceptance that, for the majority of folks with common diseases, getting normal healthcare is more difficult than it should be. That annoyance served as the foundation for Hims & Hers Health’s business, and for a while the market acknowledged that it had succeeded. Early in 2025, the stock reached $70.43. It is at $31.42. The business is still valued at $7.29 billion. The story worth comprehending is the difference between where it was and where it is now.
One of the better examples of how quickly market sentiment can change when a regulatory environment changes is the trajectory of Hims shares over the last 12 months. The company’s aggressive entry into the GLP-1 weight loss medication market, specifically by offering compounded semaglutide at prices significantly below the branded Ozempic and Wegovy products that had become household names but remained inaccessible to many patients due to cost and insurance complexity, was a major factor in its remarkable run from a 52-week low of $13.74 to a peak of $70.43.
Hims marketed itself as the reasonably priced entry point to a class of drugs that millions of Americans desired but found difficult to obtain. That positioning was really effective for a while. The trajectory was altered by the regulatory response. Investors had immediately been very enthused about an income stream, but the FDA’s choices regarding the compounded semaglutide business generated uncertainty when drug shortage designations were amended and the legal landscape for compounding pharmacies changed. When those regulatory concerns emerged, the stock plummeted and lost most of the gains it had made during the GLP-1 euphoria phase.
The company is still losing money, as indicated by the P/E ratio of -384.25. This indicates that investors’ perceptions about the company’s growth trajectory, rather than its current profitability, determine the valuation at any given price. The market was pricing in a great deal of hope at $70. Although $7.29 billion is still a significant wager on the long-term potential of the Hims platform, it is pricing in something more cautious at $31.
Because it existed prior to the semaglutide possibility and will continue once the regulatory situation is resolved in one way or another, the core telehealth business outside of GLP-1 is worth looking at independently from the weight loss narrative. CEO Andrew Dudum expanded Hims from a direct-to-consumer platform that initially catered to men’s health issues, such as hair loss, erectile dysfunction, and skin disorders, by introducing Hers as a parallel brand that offers women similar ease and privacy.
The model is truly unique: marketing that discusses health conditions in a way that doesn’t make people feel ashamed to seek help, prescriptions delivered by mail, licensed healthcare providers accessible through a phone screen, and subscription structures that provide some revenue predictability. Replicating that final section is more difficult than it seems.
Today’s volume of 22.08 million shares, which is roughly 16% higher than the average daily figure, indicates that there is more interest in the stock at current prices than usual. This could be due to either new buyers deciding that the $31 level seems more reasonable than $70 did, or existing holders deciding what to do with the position. Both could be true at the same time.
The 52-week range, which runs from $13.74 to $70.43, is sufficiently broad to encompass at least two entirely distinct investing theses within a 12-month period. As the regulatory situation becomes clearer, it is unclear which version of the firm the market will choose: the GLP-1 story, the more general telehealth platform story, or something in between.
