Hims & Hers (HIMS) has been under pressure mainly because investors are worrying about competition, sustainability of growth, and regulatory/partner risks in weight‑loss drugs and telehealth more broadly.

The core reasons HIMS is going down

1. Heavy competition in weight‑loss drugs

  • Amazon Pharmacy has started offering Novo Nordisk’s Wegovy at aggressive prices, which makes investors fear margin and market‑share pressure for telehealth players like Hims.
  • Novo Nordisk has also been cutting U.S. prices for GLP‑1 drugs like Wegovy and Ozempic, intensifying competition just as Hims is leaning into this category.
  • Lower prices from big, entrenched pharma players can cap how much Hims can charge, and that directly pressures long‑term profitability expectations.

2. Analyst skepticism and valuation worries

  • Banks like Bank of America and Morgan Stanley have highlighted that Street expectations for Hims’ revenue growth and margin expansion into 2026 may be too optimistic.
  • One report projects growth decelerating to around the high‑teens by 2026, versus earlier triple‑digit growth, which makes the stock look expensive if those older, faster growth assumptions are still “baked in.”
  • Several analysts rate the stock as “hold” or “underperform,” and note that shares recently traded at a significant premium to their average price target, which invites profit‑taking and downside volatility.

3. GLP‑1 / compounding and partnership overhang

  • There has been ongoing controversy and uncertainty around Hims’ use of compounded semaglutide (a GLP‑1 used for weight loss), including regulatory scrutiny of compounded versions in general.
  • Novo Nordisk has not formally embraced Hims as a preferred partner and there have been periods where relationships or supply dynamics shifted, which spooked the market and triggered sharp sell‑offs in the past.
  • Investors worry that if FDA rules tighten or brand‑name manufacturers change stance on compounding, Hims’ GLP‑1 strategy could be disrupted.

4. Growth is still strong, but slowing and questioned

  • Hims has posted big year‑over‑year revenue growth (around 50% in a recent year), yet guidance for upcoming periods has sometimes come in slightly below what the market hoped for.
  • When a “momentum” stock that ran hard in 2024–2025 shows any sign of slowing growth or softer guidance, traders often rotate out quickly, amplifying downside moves.
  • Some segments, like men’s sexual health, are expected by analysts to face more price competition and subscription changes, which could drag on growth in early 2026.

5. Sentiment, volatility, and short interest

  • Short interest is elevated (around the high‑20% of float recently), which means there is a large group of investors actively betting against the stock.
  • High short interest plus rich expectations often leads to big swings both up and down; good news can squeeze shorts, but any negative or even “less‑good” news can accelerate sell‑offs.
  • Recent news like the $49 introductory weight‑loss pill initially caused a spike, but the stock still closed lower on the day, showing that traders are eager to “sell the news” rather than chase rallies.

How forums and videos are framing it

Many retail investors on forums describe HIMS as a volatile “story stock”: huge opportunity in telehealth and GLP‑1s, but also crowded competition and big regulatory unknowns.

Common themes you’ll see in videos and threads:

  1. Bear view:
    • Competition from Amazon and big pharma will crush margins.
 * GLP‑1 compounding is too risky given policy and supply changes.

 * Valuation is stretched if growth slows to “normal” levels.
  1. Bull view:
    • Telehealth and consumer‑led healthcare are still early, and Hims is building a broad platform beyond just weight‑loss drugs.
 * Pullbacks after partnership or regulatory headlines are seen as buying opportunities by some long‑term investors.

 * Strong revenue growth and brand recognition could pay off if the company manages margins over time.

Mini example: what “sell the news” looks like

  • Hims announced a headline‑grabbing $49 per month intro price for a weight‑loss medication and the stock initially surged about double digits intraday.
  • By the close, it was down on the day, as traders focused on whether such aggressive pricing would really translate into profits and sustainable growth.
  • That pattern illustrates the current mood: the bar is high, and even flashier announcements can’t prevent pullbacks if investors doubt long‑term economics.

Quick HTML table: key pressure points

[5][1] [1][5] [3][1] [3][1] [7][2][4] [2][4][7] [5][3] [3][5] [1][9] [9][1]
Factor What it is Why it hurts the stock
Competition Amazon & big pharma undercutting GLP‑1 pricing.Raises fears about lower margins and lost customers.
Analyst views Ratings like Underperform/Equalweight, slower growth forecasts.Signals that Wall Street thinks expectations are too high.
Regulatory/partner risk Uncertainty over compounded GLP‑1s and shifting ties with Novo.Creates headline risk and doubt about the GLP‑1 strategy.
Growth deceleration Moving from hyper‑growth to high but slower growth.Makes the premium valuation harder to justify.
Sentiment & shorts High short interest and “sell the news” reactions.Amplifies volatility and downside on any disappointment.

TL;DR

HIMS stock is going down because big‑name competitors are squeezing the weight‑loss space, analysts are questioning whether its explosive growth and margins can last, and ongoing GLP‑1 and partnership uncertainties are keeping sentiment fragile and volatility high.

Information gathered from public forums or data available on the internet and portrayed here.