Jim Cramer: Hims & Hers Health Not Regarded as a Great Actor by Doctors

Jim Cramer believes Hims & Hers Health, Inc. is not regarded as a great actor by doctors. Despite its 93% year-to-date increase, the company's shares have fallen by 42% in February and 35% in June due to issues with weight loss drugs. Cramer commented that Hims & Hers is a good actor for consumers but not for the business. The company is heavily shorted, with 35% of shares sold short, which can lead to a stock eruption on good news.

Hims & Hers Health, Inc. (HIMS), a digital health platform specializing in weight loss and metabolic health, has been a subject of interest and controversy in the financial markets. Despite its robust growth, the company has faced significant volatility and regulatory challenges. Jim Cramer, a prominent financial commentator, has weighed in on the company's performance, noting that while it has shown promise for consumers, its business model has not been well-received by doctors and industry professionals.

The stock of HIMS has experienced significant price fluctuations in 2025. After a 93% year-to-date increase, the shares dropped by 42% in February and another 35% in June, largely due to issues with weight loss drugs. The company's partnership with Novo Nordisk ended following allegations of illegal compounding practices and deceptive marketing. These challenges have led to concerns about the company's business model and its impact on patient safety [1].

Despite the setbacks, HIMS continues to attract investor interest. The company's stock has shown resilience, with shares rebounding after the initial sell-off. Analysts project impressive growth for HIMS, with revenue expected to surge by 58% in 2025 and another 22% in 2026. Earnings are projected to soar by 174% in 2025 and climb another 38% in 2026, reflecting strong operating leverage and margin discipline [2].

The company's growth trajectory is driven by several secular trends, including the rising popularity of GLP-1 medications, the growing demand for personalized healthcare, and a massive consumer shift toward wellness, convenience, and telehealth platforms. HIMS has positioned itself to capitalize on these trends, blending brand power, product innovation, and platform scalability.

However, the company's high short interest, with 35% of shares sold short, poses a risk. A significant positive news event could trigger a stock eruption, as short sellers may rush to cover their positions. This volatility highlights the need for investors to carefully evaluate the company's fundamentals and the broader market sentiment.

In conclusion, Hims & Hers Health, Inc. is a company with significant growth potential, despite facing regulatory challenges and market volatility. Investors should closely monitor the company's performance and the broader market sentiment as it navigates these challenges.

References:
[1] https://www.nasdaq.com/articles/bull-day-hims-hers-health-hims-0
[2] https://finviz.com/news/102063/novo-nordisk-as-nvo-canadas-a-backdoor-says-jim-cramer