Hims & Hers Faces Formidable Challenge from Amazon’s Pharmacy Push

Hims & Hers US4330001060

The business model of telemedicine provider Hims & Hers is facing a significant test. A bold new move by Amazon Pharmacy into the weight-loss medication sector has placed considerable pressure on the company's growth trajectory. With its shares trading far below previous highs, investors are now questioning whether the firm can withstand the pricing power of the e-commerce behemoth or if it risks ceding substantial market share.

Growing uncertainty is reflected in recent analyst commentary from Wall Street. Bank of America (BofA) Securities reaffirmed its "Underperform" rating on the stock, simultaneously reducing its price target to $29 from $32. Analysts expressed skepticism that Hims & Hers can achieve its aggressive revenue targets. The current market consensus projects the company will deliver a $440 million revenue increase in 2026.

BofA further cautioned that 2026 is expected to be a year of heavy investment. Expenditures related to talent acquisition, technology platform expansion, and supply chain development are likely to pressure profit margins. Consequently, the bank views current EBITDA expectations as overly optimistic. In a separate development, Evercore ISI initiated coverage of the stock on January 12 with a neutral "In-Line" rating and a $33 price target.

Amazon's Aggressive Foray into GLP-1 Medications

The recent sharp decline in Hims & Hers' share price is a direct response to Amazon Pharmacy's market declaration. The retail giant is now offering the popular weight-loss drug Wegovy, manufactured by Novo Nordisk, employing a competitive pricing strategy that threatens smaller rivals.

Key details of Amazon's initiative highlight the competitive threat:
* Insured customers can access the medication for as low as $25 per month.
* A cash-pay option for the drug starts at $149 monthly.
* Distribution is planned to include pharmacy kiosks.
* Amazon is also partnering with telemedicine providers, including WeightWatchers.

This strategic move directly targets the fast-growing weight management segment, where Hims & Hers has been actively expanding. The entry of a deep-pocketed competitor like Amazon raises questions about the degree to which Hims & Hers can differentiate its platform beyond mere medication dispensing.

Stock Performance Reflects Deep-Seated Skepticism

Technical charts underscore prevailing market doubts. The equity is in a pronounced downtrend, having lost nearly 40% of its value over the past six months. Closing at $31.38 last Friday, the stock trades approximately 57% below its 52-week high reached in February 2025. Furthermore, it remains one of the most heavily shorted stocks on the market, indicating a persistent bet by many investors against the viability of its business model.

Upcoming Earnings in Focus

Investor attention now turns to February 23, 2026, when the company is scheduled to release its next quarterly results. More critical than the headline numbers will be management's forward-looking commentary. Hims & Hers has projected it will generate $725 million from its GLP-1 offerings. Whether this forecast remains credible in the new competitive landscape will be the central message of the report. Simultaneously, the company is attempting to diversify its revenue streams through new services like "Labs," a subscription for annual health testing, aiming to reduce its dependence on the volatile weight-loss drug market.