Why Hims & Hers Health, Inc. (HIMS) Crashed on Thursday

We recently compiled a list of the 10 Stocks Drop Double Digits as Investor Caution Lingers. In this article, we are going to take a look at where Hims & Hers Health, Inc. (NYSE:HIMS) stands against the other  stocks.

The stock market fell into the negative territory on Thursday, as investor caution lingered over the ongoing trade tensions among some of the world’s largest economies.

The tech-heavy Nasdaq posted the largest loss, down 2.61 percent, followed by the S&P 500 with 1.78 percent, and the Dow Jones with 0.99 percent.

Ten companies mirrored a broader market decline, dropping by as much as double digits during the end of the session. In this article, we named Thursday’s 10 biggest losers and detailed the reasons behind their decline.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A nurse in a telehealth platform talking with a patient on video call for consultation.

Hims & Hers Health, Inc. (NYSE:HIMS)

Hims & Hers Health, Inc. (NYSE:HIMS) saw its share prices fall by 15.90 percent on Thursday to close at $34.39 each as investors sold off positions amid a bearish outlook for the company that started when the Food and Drug Administration announced that Novo Nordisk’s blockbuster Wegovy and Ozempic are no longer in the shortage list.

The news took its toll on Hims & Hers Health, Inc. (NYSE:HIMS), which has been making a compounded knock-off version of the blockbuster treatments that contributed more than $225 million in revenues in 2024.

US regulations allow compounding pharmacies to copy branded medicines that are facing supply shortages. Wegovy and Ozempic have been in shortage in the US for already two years.

Further weighing down on investor sentiment is Citi Group’s downgraded rating for the company. According to Citi, it gave Hims & Hers Health, Inc. (NYSE:HIMS) a “sell” rating with a price target of $27 apiece, or a 21-percent decline from its current stock price.

Overall HIMS ranks 6th on our list of Thursday’s biggest losers. While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HIMS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.