Hims & Hers Shares Defy Competitive Fears with Resilient Performance

Hims & Hers US4330001060

The recent launch of Novo Nordisk's oral Wegovy weight-loss medication in U.S. pharmacies, priced aggressively at $149 per month for cash-paying customers, was expected to directly challenge Hims & Hers Health. This new competitor targets the very advantages of price and accessibility that have fueled the growth of personalized GLP-1 solution providers. Yet, in a surprising market reaction, Hims & Hers shares posted notable gains on Tuesday, even as pharmaceutical giant Eli Lilly saw its stock decline by approximately 4% in the same session. This divergence suggests investors are reassessing the resilience of Hims & Hers' customer base and the degree to which competitive threats were already reflected in its valuation.

To understand the stock's strength, one must consider its significant correction over the preceding 90 days, during which it lost roughly 40% of its value. This steep decline had already cooled the overheated expectations for the GLP-1 growth segment and priced in a substantial portion of the anticipated competitive risks. Consequently, the market's response to the Wegovy news was muted, indicating that much of the fear was already baked into the share price.

Based on recent data, Hims & Hers now trades at a price-to-earnings ratio of about 59. While this remains well above the industry average of 23.3, it reflects a business model intensely focused on expansion. The sharp pullback has meaningfully reduced this premium, transforming the stock into a focal point for investors: it retains a growth valuation but with expectations that have been notably tempered. The stock closed yesterday at $34.71, trading above its 50-day moving average but still significantly below its longer-term averages—a technical picture consistent with an asset stabilizing after a major setback.

Broadening the Narrative Beyond Weight Loss

Concurrently, Hims & Hers is actively working to broaden its investment story beyond a single product category. Company leadership is increasingly emphasizing a strategy centered on a comprehensive "hormonal ecosystem." This includes expanding its offerings in testosterone therapy, menopause-related treatments, and personalized mental health care.

Market commentary from January 6th highlights that investors are beginning to weight this strategic direction more heavily, viewing the company less as a pure-play GLP-1 vendor and more as a platform for personalized digital health. With a market capitalization of $7.9 billion, this repositioning is crucial. This perspective is bolstered by sector data: a report published today by Galen Growth indicates global digital health funding rose 9% in 2025 to $28.8 billion, signaling renewed venture capital and institutional investor interest in the very infrastructure underpinning Hims & Hers' business model.

The Road Ahead: Operational Execution Under Scrutiny

The focus for the coming quarters will shift to an operational stress test. In its next earnings release, the market will scrutinize how the introduction of the $149 Wegovy pill affects subscriber churn rates for Hims & Hers. The company's ability to maintain its gross margins amid new pricing pressure from Novo Nordisk will be a key determinant of its share price performance in the first quarter of 2026. On a technical basis, some analysts identify the area around $44.36 as a fair value estimate, representing a potential upside of over 20% from current levels.

Key Takeaways:

• Novo Nordisk's oral Wegovy launches in the U.S. at $149 per month.
• Hims & Hers was not listed as an official partner for the rollout, a theoretically negative development.
• Its shares advanced despite the news, contrasting with losses at Eli Lilly.
• The stock price fell approximately 40% in the past 90 days, significantly reducing its valuation premium.
• The investment narrative is shifting from GLP-1 specifics to a broader hormone and health platform.
• Global digital health funding is trending upward again, reaching $28.8 billion in 2025.