I'm Back Buying Hims & Hers Stock AGAIN!

Summary

The speaker discusses their decision to reinvest in Hims & Hers stock after a recent dip, having first bought the stock in October 2023 at $6. Despite a temporary drop, the company continues to show strong financial performance, including significant revenue and subscriber growth. The video highlights the company's focus on telehealth, expanding markets, and its impressive profitability trajectory. The speaker believes the stock presents a long-term investment opportunity with potential for high returns, and shares their optimism about the company’s future, citing its ability to consistently exceed expectations.

Takeaways

• 📈 The user is back to buying Hims & Hers stock, which they first purchased in October 2023 when it was $6.
• 📉 Recently, the stock has fallen, presenting a potential buying opportunity as the user sees higher return potential now.
• 🤓 The user runs numbers and finds bigger potential returns compared to a year or two ago, indicating confidence in the stock's future performance.
• 📊 The company has consistently delivered impressive earnings, with a 51% year-over-year revenue growth and a 43% increase in subscribers.
• 🌟 The user highlights the company's successful performance and potential for future growth, despite recent stock price volatility.
• 📉 The stock has fallen nearly by half since June, but the user believes this is due to short-term investors rather than any fundamental issues.
• 🏥 Hims & Hers focuses on telehealth, offering personalized and affordable healthcare, especially appealing to younger generations.
• 🧴 The company has recently launched a successful weight loss product, adding to its diverse healthcare offerings.
• 💰 Financially, the company is strong with high gross margins, profitability, and a solid cash balance, enabling share buybacks.
• 📈 The user sees long-term potential in the stock, expecting significant returns and considering it a potential major position in their portfolio.

Q & A

What is the focus of the YouTuber's video?

The YouTuber focuses on providing an update on Hims & Hers stock, discussing why it has recently dipped, analyzing the company's financial performance, and sharing predictions for the stock's growth over the next five years.

When did the YouTuber last buy Hims & Hers stock, and what was its price at that time?

The YouTuber last bought Hims & Hers stock in October 2023, when it was priced at $6.

What has caused the recent dip in Hims & Hers stock price?

The YouTuber believes that the recent dip is caused by short-term investors and hype around the GLP-1 weight loss injections, as well as Wall Street speculation, rather than any fundamental issues with the company.

What financial performance highlights does the YouTuber mention for Hims & Hers?

The company achieved a 51% year-over-year revenue growth, a 43% increase in subscribers, and consistently beats earnings expectations, which the YouTuber describes as strong financial performance.

How does the YouTuber describe Hims & Hers' earnings results over the past two years?

The YouTuber notes that Hims & Hers has consistently delivered '10 out of 10' earnings results, with strong revenue growth and frequent earnings beats, despite occasional drops in stock price following these reports.

What industries does Hims & Hers operate in?

Hims & Hers operates in various industries, including dermatology, mental health, and weight loss, all of which are multibillion-dollar markets with growth potential.

What recent development in the weight loss market has impacted Hims & Hers stock?

Hims & Hers recently launched a weight loss program targeting $100 million in revenue, which it achieved much faster than expected. However, news about the end of a GLP-1 drug shortage led to a drop in stock price.

How does the YouTuber view Hims & Hers' long-term potential?

The YouTuber views Hims & Hers as a strong long-term investment, with the potential for significant growth over the next few years. They believe the company could become more profitable and continue to expand its presence in large markets.

What valuation multiples does the YouTuber use to estimate the potential return of Hims & Hers stock?

The YouTuber uses different multiples for conservative, moderate, and optimistic estimates, ranging from 20x to 60x earnings. They believe that, under optimistic scenarios, Hims & Hers stock could deliver a nearly 10x return.

What is the YouTuber's plan for their Hims & Hers investment moving forward?

The YouTuber plans to increase their position in Hims & Hers, even considering it as a potential largest holding in their portfolio. They view the stock as a winner and intend to keep backing it.