Hims & Hers Health Inc. (NYSE: HIMS) is having a rough Tuesday morning. The stock dropped after the company posted mixed second-quarter results Monday evening, and the market is clearly more worried about the bottom line than the top line.
Here's the quick rundown: Hims & Hers reported a quarterly loss of 37 cents per share. That's a big miss compared to the analyst consensus, which expected a loss of just three cents. Ouch.
But wait, there's good news too. Revenue came in at $753.21 million, beating the Street's estimate of $699.889 million. That's also a solid jump from the $544.83 million the company brought in during the same period last year. Subscribers also grew to nearly 2.9 million, a 19% increase year-over-year.
So why the sell-off? It's all about margins. The company's push into branded GLP-1 weight-loss drugs and international markets is costing a lot of money. Those investments drove up expenses, turning what was a profit a year ago into a loss this quarter. Reuters noted that these concerns are overshadowing the strong subscriber growth and the raised full-year forecast.
Speaking of guidance, Hims & Hers raised its fiscal 2026 revenue outlook to between $3.1 billion and $3.3 billion. That's above the $2.93 billion analysts were looking for. So the company is confident about growth, but investors are questioning the cost of getting there.
Needham isn't fazed, though. The firm maintained a Buy rating on the stock and raised its price target to $42 on Tuesday.
Now, let's talk technicals. At $30.10, HIMS is trading 3.8% below its 20-day simple moving average (SMA) of $31.19 and 5% below its 50-day SMA of $31.57. That keeps the near-term trend tilted lower unless buyers can reclaim that $31-$32 zone. On the flip side, it's still 7.5% above the 100-day SMA ($27.91) and 1.2% above the 200-day SMA ($29.64), so the intermediate trend hasn't fully broken down.
Momentum is best described as "neutral but fragile," with the Relative Strength Index (RSI) sitting at 51.64.
The moving average crossover picture is a bit mixed. The 20-day SMA below the 50-day SMA is a bearish near-term signal. But the golden cross that happened in July (when the 50-day SMA crossed above the 200-day SMA) suggests the bigger trend could stabilize if support holds.
Here are the key levels to watch:
- Key Resistance: $30 — a round-number pivot that's also near the 200-day SMA/EMA area, so failed retests could attract sellers.
- Key Support: $24 — a prior demand zone well below the current price that would likely come into play if the stock loses the high-$20s moving-average shelf.
As of premarket trading Tuesday, Hims & Hers shares were down 5.26% at $30.10, according to market data.
So, what's the takeaway? Hims & Hers is growing fast, but growth is expensive. The market is punishing the company for spending big on new markets and products, even if that spending could pay off later. For now, the stock is in a wait-and-see mode, with traders watching whether it can hold above those key moving averages.
