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Hims & Hers: Profitable Growth or Just Another Overhyped Millennial Brand?Okay, Hims & He... Hims & Hers: Profitable Growth or Just Another Overhyped Millennial Brand?
Okay, Hims & Hers (HIMS). Another direct-to-consumer "disruptor" promising the moon, but delivering... well, let's see. They're touting Q3 results with nearly $600 million in revenue, up 49% year-over-year. Net income of almost $16 million. Subscribers are up. Blah, blah, blah. Sounds like a typical press release designed to pump the hims stock price.
The Numbers Game
Let's be real, though. Growth doesn't automatically equal a good investment. I mean, a toddler grows fast, but you wouldn't hand them the keys to your car, would you? The real question is: Is this growth sustainable, or are they just burning cash to acquire customers who'll bail the second something shinier comes along?
They're bragging about a 21% increase in subscribers, which sounds good on paper. But what's the churn rate? How many people are signing up just to try it once and then canceling? They conveniently leave that out of the official narrative, offcourse. And while monthly online revenue per average subscriber is up, are they just squeezing more money out of existing customers with upselling and subscription tricks?
The fact that analysts are all over the place on this one – some saying "hold," others screaming "reduce" – tells you everything you need to know. Wall Street can't make up its mind, which usually means nobody really knows what's going on.
GLP-1s and the Weight Loss Gold Rush
Hims & Hers is also jumping on the GLP-1 bandwagon, offering compounded injections similar to Ozempic and Wegovy. Smart move, sure. Everyone wants a piece of that weight-loss pie. But this market is about to get flooded with competition. Big Pharma ain't gonna sit on the sidelines while some telehealth startup steals their lunch.
And the discussions with Novo Nordisk to potentially distribute Wegovy on the Hims & Hers platform? Sounds promising, but it's just "discussions" at this point. It's like saying you're in "active discussions" to win the lottery. Doesn't mean you're gonna win.
Plus, let's not forget the potential regulatory risks. Compounded drugs are always under more scrutiny than FDA-approved ones. One bad batch, one lawsuit, and the whole house of cards could come tumbling down. Is the reward really worth the risk here? I'm not convinced.
The Millennial Brand Trap
Hims & Hers is a master of marketing to millennials and Gen Z. Slick websites, trendy branding, and personalized solutions. But at the end of the day, it's still just selling healthcare products online. And healthcare is, well, healthcare. It's not a trendy pair of sneakers or the latest iPhone.
I swear, if I see one more ad with perfectly-coiffed dudes talking about hair loss, I'm gonna lose it. This isn't about "empowerment" or "self-care." It's about selling stuff. And while there's nothing inherently wrong with that, let's not pretend it's anything more than it is. They expect us to believe this nonsense, and honestly...
Also, what's with the stock's volatility? Up 173%, then down 63%, then up 146%, then down 36%... It's like watching a hyperactive chihuahua on a caffeine binge. No thanks. I'll pass on that rollercoaster. Gimme sofi stock any day.
So, What's the Real Story?
Look, Hims & Hers might be a decent company with a good product. But it's also operating in a crowded market with plenty of risks. The stock's volatility, the reliance on trendy marketing, and the looming threat of regulatory scrutiny all give me pause. Until I see more concrete evidence that this isn't just another overhyped millennial brand, I'm staying far, far away.