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Why Was Hims & Hers Stock (NYSE: HIMS) Down Last Week?

Analyst Team trader
Updated 1 Jul 2024

Hims & Hers Health stock price (NYSE: HIMS) reversed recent sentiment over the past week, shedding 8.85%. Despite this pullback, the stock has added more than 100% through 2024 so far, as the bulls have remained firmly in charge. So why did the shares drop?

The healthcare company became the target of a short report published by a short-seller. The release of the short report seemed to upset the balance of sentiment, with some holders likely looking to take profits off the table.


According to the information available, the short-seller made several claims against Hims & Hers, which led to negative investor sentiment and a consequent fall in the stock price. This kind of immediate reaction is not uncommon in the stock market when a company faces potentially damaging accusations.

The merits of the short-seller’s accusations against Hims & Hers may be debated, but what is clear is the market's immediate reaction to the publication of such allegations. Many analysts remain bullish on the firm, and this balance could offer solace to current shareholders and potential investors who own or are considering purchasing Hims & Hers stock, reassuring that the core fundamentals and long-term growth prospects of the company remain intact despite the negative report.

The informed view of analysts is often seen as vital for investors to navigate through the complexities of market fluctuations, but it is worth noting that most of these participants have a vested interest in the price action of the stock they cover, whether that be from a bullish or bearish position. While short-term volatility can be distressing for investors, it is essential to distinguish between knee-jerk market reactions and long-term investment viability.

Given this context, those looking at the current situation may want to assess Hims & Hers by reviewing its financials, growth strategy, and market position beyond the accusations leveled by the short-seller's report. It will also be crucial to follow any response or official statements from the company in relation to the claims made in the report, as these will potentially have a further impact on investor confidence and stock performance.

While the short report has brought forth challenges for Hims & Hers in the stock market, it may also be perceived as a possible entry point for investors who have confidence in the company's ability to weather this storm and continue on a trajectory of growth. As always, potential investors should conduct thorough due diligence and consider seeking professional financial advice before making any investment decisions.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.