What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 2.2% in the morning session after Morgan Stanley reiterated its Equalweight rating but voiced concerns about the company's slowing growth and increasing competition.
The firm pointed to a significant slowdown in revenue growth. Morgan Stanley's report noted that growth was projected to slow to 17% in 2026, a sharp drop from the 111% year-over-year growth seen in the first quarter of 2025. The analyst note also highlighted specific worries about the men's sexual health business, expecting it to be a drag on growth in the first half of 2026. This was attributed to a shift in subscription plans and more intense price competition. Additionally, the firm cited weak third-party sales data and potential risks to the company's profit margins as near-term issues.
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What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 83 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 34.9% on the news that Novo Nordisk announced plans to offer its weight loss drug Wegovy through Hims & Hers Health's platform, expanding access to one of its fastest-growing products. By partnering with a popular telehealth company, Novo could speed up Wegovy's adoption, leading to more prescriptions. For investors, the deal signals a clear strategy to expand distribution and grab more market share, a move that could also boost sales growth for Hims & Hers (HIMS).
Hims & Hers Health is down 8.1% since the beginning of the year, and at $30.69 per share, it is trading 55.4% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $1,874.
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