Why Hims & Hers Health, Inc. (HIMS) Went Down on Tuesday

We recently published an article titled Two of 10 Worst-Performing Stocks Fall to All-Time Lows on Tuesday. In this article, we are going to take a look at where Hims & Hers Health, Inc. (NYSE:HIMS) stands against the other stocks.

Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.

To come up with Tuesday’s worst performers, we considered only the stocks with $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) plummeted by 22.32 percent on Tuesday to end at $39.86 as investors continued to unload portfolios to mitigate risks following the Food and Drug Administration’s announcement that the supply shortage for the bestselling weight loss and diabetes treatment manufactured by one of its competitors has already been addressed.

According to the FDA, supply is currently meeting or exceeding demand, and Novo Nordisk has developed a product inventory to cover future demand.

The news took a heavy hit on Hims & Hers Health, Inc. (NYSE:HIMS), which has been making a compounded knock-off version of the blockbuster treatments, at a time when it announced the purchase of a plant to manufacture the class of drugs that includes Wegovy and Ozempic.

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.

Overall HIMS ranks 1st on our list of Tuesday’s worst performers. 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 as promising as HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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