HIMS & HERS Health is the wise purchase now?

Regarding the stocks that continue to beat the market, I think I will be directly at the company that leads the claim of artificial intelligence (AI). Of course, stocks Palantir technology or Core weave Keep red in the powerful technical field.

But wise investors understand that there are countless opportunities besides the general suspect of technology. One of the new preferred companies among investors is the remote medical business. HIMS & Health (To him 6.75%)). HIMS & HERS HEALTH, which has increased 157% in the market in the market on June 4, looks like a next monster growth stock at a medical and technology intersection.

Let’s take a look at what Wall Street thinks about him and her business. Is it a good idea to buy this remote medical stock? Keep reading to find out.

HIMS & HERS is a new destructive force of telemedicine.

HIMS & HERS is a remote medical platform that can access various drugs to patients, including skin care, anxiety, sexual health and even weight loss.

At the heart of the company’s business model is the subscription platform. At the end of the first quarter, HIMS & HERS boasted 2.4 million subscribers, showing an increase of 38% year -on -year. This is a quarter of sales of $ 556 million in quarter, dropping 111%of the previous year.

HIMS & She can benefit from several ways by keeping your business online.

First, subscription revenue is repeated, so high yields are high. Second, by maintaining the user base using the user base, the company has the flexibility to spend less on marketing and invest in other areas such as technology or research and development to strengthen its customer secure strategy.

According to the management’s vision, HIMS & She doubles the investment in AI and understands customer data better. This can be an authentic movement because the company can help unlock new expansion opportunities.

Image Source: Getty Image.

However, Wall Street may not be sold yet

The above ideas have been drawn to a rapidly growing and destructive new solution in the medical space, but Wall Street doesn’t seem to be fully sold to him and her yet.

Last month, several equity research analysts, including Piper Sandler, Citigroup,,, Bank of Americaand Morgan StanleyEach maintained neutral, sales, performance deterioration or equivalent weight. Another way to see this seems to have no buying rating for him and her stock among the largest banks in Wall Street.

In addition, the average price estimate among the analysts of HIMS & HERS stocks is about $ 48, which is 12% down from the trading level as of June 4.

Given the somewhat weak feelings of Wall Street, what can be promoted to the unstoppable rally of stocks? I think the high interest of the company can be the cause of the increase in stocks.

The ratio of paragraph data by ycharts.

According to the above chart, about 35%of him and her and her floating are sold short. Investors who make short stocks will drop prices. Short interest of more than 10% is considered abnormally high. He and her short interest are not only much higher than the general benchmark. rising.

If an investor who lacks stocks needs to purchase the company’s shares, return the borrowed stock and finish the position, high interest can supply fuel of volatility and stock prices. This is known as a short cover, which often leads to a clear increase in stocks during the limits, adding to volatility. With short pressure, you can be more familiar with this mechanics.

Despite the growth and expansion of the notable subscribers, HIMS & HERS Stock shows too much volatility to what I like.

HIMS & Is she a good purchase now?

At first glance, I can understand that he and her and her attractive investment. Remote medical care represents attractive opportunities at the intersection of medical and technology, and has clearly proved that HIMS & HERS can continue to acquire users and generate profits.

Moreover, the view that AI present more extensively in the medical space should not be discounted.

Nevertheless, I struggle to pass the behavior of the meme inventory type displayed here. Some investors have earned money to own this stock, but they are suspicious when they are triggered for the right reason. In other words, I think he and her more swing trading shares (timing is everything), unlike the long -term opportunity to him.

For this reason, I will pass him and her now. I am interested in the company’s potential, but I think the stock has increased significantly, and I will not be surprised to see that the stock price will contract later.