Hims & Hers Options Surge: A Tale of Wegovy and Retail Investor Momentum

The options market for Hims & Hers Health (HIMS) exploded in April 2025, driven by a confluence of strategic moves, financial momentum, and retail investor enthusiasm. While the specifics of the surge were not explicitly detailed, the timing aligned with a landmark partnership and a broader shift in how investors engage with high-growth healthcare stocks.

The Catalyst: Wegovy’s Accessibility Play

The primary trigger for Hims & Hers’ stock surge was its April 23, 2025, announcement of a collaboration with Novo Nordisk to offer Wegovy, the popular obesity drug, at a flat-rate price of $599/month. This bundled pricing—regardless of dose strength—eliminated the complexity of copays and insurance hassles, positioning Hims & Hers as a streamlined gateway to the drug. The move sent shares soaring over 40% in a single day, reflecting investor optimism about capturing a share of Wegovy’s blockbuster demand.

Underlying Strength: Financial and Strategic Grit

Beyond the Wegovy news, Hims & Hers’ fundamentals offered a foundation for investor confidence. Its Q4 2024 financial results, released in February 2025, revealed:
- Revenue of $1.5 billion annually, up 69% year-over-year, with Q4 revenue hitting $481 million (95% growth).
- 2.2 million subscribers, a 45% increase year-over-year.
- $126 million in net income, marking its first full-year GAAP profitability.

These results underscored the success of its subscription model and telehealth services, which now include AI-driven diagnostics and whole-body lab testing. The company’s shift toward high-margin, value-based care—exemplified by the Wegovy deal—suggested a strategic pivot to capitalize on demand for accessible specialty medications.

The Risks: Regulatory Headwinds and Pricing Pressures

Yet, the path forward is not without obstacles. Regulatory scrutiny looms large: U.S. authorities had already barred Hims & Hers from selling cheaper generic versions of semaglutide (Wegovy’s active ingredient) by removing it from shortage lists. Competitors like Eli Lilly’s Tirzepatide, which Hims & Hers now also offers, add complexity to its pricing strategy. Analysts noted that margin pressures could arise if the company’s bundled pricing fails to offset rising drug costs or marketing expenses.

The Moomoo Factor: Retail Investors in the Driver’s Seat

The surge in options activity also reflects retail investors’ growing influence. Platforms like Moomoo, a commission-free brokerage with a focus on financial literacy, amplified awareness of Hims & Hers’ moves. Its April 2025 initiatives—such as hosting seminars at Columbia University and conducting user surveys—highlighted a community primed to act on emerging trends. While Moomoo’s direct role in the options surge is unclear, its user base likely capitalized on the Wegovy news, betting on short-term volatility.

Analysts Split on Long-Term Value

Brokerage sentiment was mixed. The average target price of $42.10 (18.6% upside from $35.49 at the time) suggested optimism about near-term gains, while GuruFocus warned of an 8.77% downside risk within a year due to valuation concerns. The high estimate of $85.00, however, hinted at bullish scenarios where Hims & Hers could dominate the Wegovy distribution market.

Conclusion: A High-Reward, High-Risk Bet on Healthcare Access

Hims & Hers’ options surge in April 2025 was the result of a strategic masterstroke—the Wegovy deal—and the growing power of retail investors. With 40% stock gains on the news and a robust financial foundation, the company is well-positioned to capitalize on demand for affordable specialty medications. However, risks like regulatory shifts and margin pressures mean investors must weigh short-term volatility against long-term sustainability.

For now, the data tells a compelling story: a company that grew subscribers by 45% in a year and achieved profitability for the first time is a magnet for both speculative and value-driven investors. Yet, with analyst targets ranging from $32.38 to $85, the path ahead is as uncertain as it is exciting. Those willing to bet on Hims & Hers’ ability to democratize healthcare access may find rewards, but the stakes—like Wegovy itself—are high.