What Bears Saw Before Hims & Hers Health Fell

Weight loss drugs, peptide bets and a global telehealth build out kept headlines busy, but the investment result was very different. Holding Hims & Hers Health over the past year would have meant a 43.1% loss, including dividends. If an investor bought in on 2 November 2025 believing vertical integration, AI and international deals justified a rich P/E, which specific assumptions about margins, regulation or capital needs proved too fragile rather than entirely wrong?

This theme extends beyond Hims & Hers Health. See which of 33 healthcare AI stocks may still merit a closer look.

The Argument You Would Have Been Weighing Up On Hims & Hers Health

The shares cost US$45.46 at the start of the period, and anyone looking at Hims & Hers Health then had to choose between two very different stories.

The bullish narrative pointed to a Fair Value of US$85, a rough guide to what that camp thought the stock was worth if things played out their way, built on vertical integration in diagnostics and advanced compounding that was expected to lift user retention and margins.

The bearish view anchored on a Fair Value of US$28, driven by concerns that tighter data privacy rules and heavier telehealth regulation could push compliance and marketing costs higher and squeeze profitability.

What The Results Changed For The Hims & Hers Health Thesis

The biggest development was Hims & Hers Health raising US$350m of zero coupon convertible notes to fund global expansion and AI, which supported the view that capital would be available for vertical integration and overseas deals. The numbers told a tougher story. Revenue reached US$753.2m in Q2 2026 versus US$544.8m a year earlier, while profit swung to a loss of US$86.3m and net margin fell to 11.5%. The evidence pointed in both directions.

The lesson is simple. When a story rests on rising profitability and capital-light scaling, do not just track sales and subscriber growth. Watch net margin and the size and structure of new financing to see whether expansion is reinforcing the thesis or quietly rewriting it.

What You Are Being Asked To Believe About Hims & Hers Health Today

Hims & Hers Health now trades at US$25.24, with the selected Narrative’s Fair Value sitting above that quote based on its own modelling. The argument leans on AI-heavy service automation, complex therapies and overseas operations as the levers that could eventually matter more than near term margin strain.

For the recent fall to look like opportunity rather than warning, a buyer today would need confidence that rapid growth in branded GLP-1 weight loss, testosterone and international subscribers can offset legal, regulatory and payment pressure on profitability.

"The main thing that has to go right is that Hims & Hers Health turns its rapid expansion in branded GLP-1 weight loss, testosterone, and international operations into durable, higher-margin subscriber relationships despite rising regulatory and payment scrutiny."

One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all

Which Company Could Surprise You Next?

This company's disappointment is already part of the story. Your next idea could come from looking where the price and the possibilities still seem far apart. Here are three companies priced below our estimates.

• Company 1 - 46% below our estimate - sells large LED video systems as bigger venues and transport hubs upgrade displays.
• Company 2 - 31% below our estimate - supplies critical chips and software that keep rising data traffic connected, secured and managed.
• Company 3 - 21% below our estimate - builds a full connectivity stack spanning copper cables to silicon photonics for faster data links.

Those are three of them. See the full list of 34 companies trading below our fair value estimates →

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