Latest news with #Hims'
Yahoo
13-05-2025
- Business
- Yahoo
2 No-Brainer Growth Stocks to Buy Right Now
Most growth stocks have struggled in early 2025. Despite this volatility, several innovators continue to post strong financial results, an expanding customer base, and a widening competitive moat. These two world-class innovators scan as top buys right now. 10 stocks we like better than Hims & Hers Health › U.S. equity markets have faced significant volatility in 2025 as ongoing trade disputes, inflation uncertainty, and geopolitical tensions continue to weigh on investor sentiment. Growth-oriented companies, in particular, have seen heightened pressure, with many high-multiple stocks experiencing sharp drawdowns even amid strong underlying performance. While short-term noise can shake confidence, it also creates compelling buying opportunities. Despite the broader pullback in growth stocks this year, a handful of companies are still executing at a high level. The two highlighted below -- one a rising leader in digital healthcare, the other a cutting-edge voice artificial intelligence (AI) platform -- offer an attractive mix of growth, innovation, and market expansion. These two innovators are riding secular trends that are only now beginning to accelerate, and both companies are building real moats around their respective platforms. Here's why these two growth stocks scan as no-brainer buys right now. Hims & Hers Health (NYSE: HIMS) has delivered explosive growth in 2025, with shares up 114% year to date. At a $11.3 billion market cap, the stock trades at roughly 5 times its 2025 revenue-guidance midpoint. That might seem rich until you consider management's newly unveiled 2030 target of $6.5 billion in revenue -- suggesting today's valuation could prove conservative. Yes, Hims trades at 86.2 times forward earnings, but that premium reflects execution, not hype. In 2025's first quarter, revenue surged 111% year over year to $586 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to $91.1 million. Net income hit $49.5 million, proving this company isn't just growing fast -- it's growing profitably. High-margin, tech-enabled care is driving real bottom-line expansion, a rarity among digital healthcare providers. Hims' platform fundamentals are rock solid. Subscriber count climbed 38% to 2.4 million in Q1, while average monthly revenue per user jumped 53% to $84. This combination of user growth and monetization power fueled $109 million in operating cash flow and $50 million in free cash flow last quarter alone. Looking to 2030, management targets $1.3 billion in adjusted EBITDA, implying roughly 20% annual growth in revenue and profitability. The five-pillar growth strategy, consisting of deeper personalization, expanded specialties, elevated care quality, strategic partnerships, and global expansion, positions Hims as more than a telehealth provider. It's building a modern healthcare ecosystem capable of reaching millions more patients. What's the investing takeaway? The current premium may prove a bargain for investors willing to pay up for quality growth. After all, Hims combines tech's scalability with healthcare's defensive nature, a rare mix that should compound nicely over time. SoundHound AI (NASDAQ: SOUN) has had a rough year, with shares down 54% year to date, but the underlying business tells a different story. The company exited Q1 with $246 million in cash and no debt, giving it a strong liquidity position to continue funding growth initiatives without financial strain. In Q1 2025, revenue surged 151% year over year to $29.1 million, with no single customer accounting for more than 10% of sales. While generally accepted accounting principles (GAAP) net income was $129.9 million, that figure includes a non-cash gain of $176 million related to contingent acquisition liabilities. On a normalized basis, SoundHound reported a non-GAAP net loss of $22.3 million and adjusted EBITDA of negative $22.2 million. Despite near-term losses, SoundHound AI's operational momentum is building. During Q1 2025, the AI voice pioneer launched Amelia 7.0, a full-featured agentic AI platform. Moreover, its voice commerce and smart answering tools are now integrated into major restaurant chains, automotive partners, top-tier hotel groups, fitness franchises, and several global telecom and healthcare providers. What's the bottom line? This AI voice pioneer sports strong fundamentals, a cash-rich balance sheet, rapidly growing customer adoption, and a proven platform being implemented across a diverse set of industries, from automotive to hospitality. As businesses scramble to deploy AI solutions, SoundHound AI is well positioned to capture this massive market opportunity. Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 George Budwell has positions in SoundHound AI. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2 No-Brainer Growth Stocks to Buy Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
05-05-2025
- Business
- Bloomberg
Hims Reaffirms 2025 Sales Guidance After Posting Quarterly Beat
Hims & Hers Health Inc. posted better-than-expected first-quarter revenue as the company pivots away from making copycat weight-loss drugs and instead focuses on selling discounted versions of Novo Nordisk A/S 's blockbuster Wegovy. Hims' business got a boost when branded weight-loss drugs were in short supply and a regulatory loophole allowed the company to sell a copycat version of it. Those shortages have since resolved and now the telehealth company is finding a new lane by selling branded drugs at a discount.
Yahoo
25-02-2025
- Business
- Yahoo
Hims is officially phasing out its copycat weight-loss drugs, and the company's stock tumbled — again
Hims and Hers plans to stop selling compounded weight loss drugs after an FDA update. Hims and Hers' stock fell over 19% in after-hours trading on Monday. The FDA removed semaglutide injections from its shortage list last week, which sent Hims shares down. Hims and Hers' stock fell over 19% in after-hours trading on Monday after its CEO said the company would no longer sell compounded versions of mega-hit weight loss drugs. "We will have to start notifying customers in the coming month and two that they will need to start looking for alternative options on the commercial dosing," Andrew Dudum, Hims' CEO, said on an earnings call on Monday. "I would suspect, just being very direct, that a lot of those patients will try to go into the open market and try to secure a branded option." The telehealth company has been making legal copies of Novo Nordisk's weight loss and diabetes drugs Ozempic and Wegovy during a shortage that began in 2022. On Friday, the US Food and Drug Administration removed semaglutide injection products from its shortage list and gave compounders 60-90 days to stop making copies. Hims' stock plunged nearly 26% on Friday after the FDA announcement. Hims has been selling these compounded drugs, which are tailored to individual patients, for a fraction of Novo's prices. Hims' GLP-1 drugs start at $199 a month, while Wegovy and Ozempic cost over $900 a month — though the price many patients pay depends on their insurance. Earlier this month, Hims ran a Super Bowl ad touting the affordability of its weight loss drugs compared to those sold by big pharmaceutical companies. The ad sparked controversy for promoting weight loss drugs and for omitting safety information. "Big pharma's reaction to our call to fix today's stuck and sick healthcare system has been to band together and question the need for affordable compounded solutions and incite fear in regular Americans," Dudum said on Monday's earnings call. Hims can still produce these drugs if there is another shortage or if there is a clinical necessity for personalization of the drug. In its earnings report, Hims credited these weight-loss drugs for growth in online revenue in 2024. The company reported $481 million in fourth-quarter revenue, beating analyst expectations of $470 million. Revenue grew 95% compared to the same quarter in 2023. Chief financial officer Yemi Okupe told Bloomberg in an interview published Monday that weight-loss drugs comprised about around 20% of last year's sales. On the earnings call, Okupe said the company expects $725 million of its $2.3 billion to $2.4 billion in revenue this year to come from weight-loss drugs. The figure excludes contributions from semaglutide drugs, which will not be offered after the first quarter, Okupe said. Hims launched in 2017, selling generic hair loss, sexual health, and skincare drugs online via telemedicine. It began selling weight loss copies in 2023. Wegovy and similar drugs for weight loss have become a huge business. The US adult obesity rate was about 40% from 2017 to 2020, and Goldman Sachs researchers estimated last year that the drugs could be prescribed to 15 million Americans by 2030. The bank's researchers said the anti-obesity drug market could grow to $100 billion by that time. The highly-coveted drugs are being used by celebrities, including Oprah Winfrey, Elon Musk, and Charles Barkley, and by non-celebrities alike. Hims shares are up 112% this year. Read the original article on Business Insider
Bloomberg
24-02-2025
- Business
- Bloomberg
Hims 2025 Sales Outlook Beats Despite Weight-Loss Uncertainty
The company's quarterly sales also beat expectations Hims' reliance on compounded Ozempic faces increasing scrutiny By Save Hims & Hers Health Inc. provided 2025 sales guidance that exceeded Wall Street projections even as the company's copycat weight-loss drug business faces an unclear future. Revenue for the year will be $2.3 billion to $2.4 billion, Hims said on Monday afternoon, above analysts' estimates of $2.09 billion.
