HIMS Stock Crashes Overnight After Brutal Q1 — But An Investor Says Novo, Lilly Deals Could Make It ‘Netflix Of Healthcare’

• Raul Shah of DocShah Financial said that investors are underestimating HIMS' AI-driven healthcare platform ambitions.
• Shah said partnerships with Novo and Lilly could become the “first of many” pharma tie-ups.
• Hims fulfilled over 125,000 Wegovy shipments within six weeks after launching direct access to Novo Nordisk’s branded GLP-1 products.

Shares of Hims & Hers Health, Inc. (HIMS) crashed 13% in overnight trading on Tuesday after a brutal quarterly miss, but one major investor argued that the telehealth company’s ties with Novo Nordisk and Eli Lilly could eventually turn it into the “Netflix of healthcare.”

HIMS stock jumped over 3% on Monday to end at $29.14, logging its second straight session of gains. 

Investor Calls HIMS ‘Netflix Of Healthcare’

Raul Shah, chief investment officer at DocShah Financial, whose largest equity position is Hims & Hers Health, said in an interview with Schwab Network that the market is still underestimating how disruptive the company could become. He compared the company’s evolution to early-stage Netflix, saying that Hims is reshaping healthcare around convenience, affordability and personalization.

“Hims is faster than traditional healthcare. It’s easier than traditional healthcare, and it’s cheaper if you factor in the cost of health insurance,” Shah said. He said that the company’s long-term edge will come from integrating AI, labs, data infrastructure and personalized treatments into a single healthcare ecosystem. According to Shah, investors are still valuing Hims largely as a telehealth company rather than a broader healthcare platform.

“That’s ultimately when the market wakes up and starts to re-rate Hims dramatically because it’s extremely mispriced right now,” he said.

Novo, Lilly Deals Fuel HIMS Bull Case

A major focus of Shah’s bullish thesis centered around Hims & Hers’ expanding relationships with major pharma companies.

“You know, the original toxic couple was Brad and Jen, but now we have Hims and Novo,” Shah joked. The remark referenced the earlier conflict between Hims & Hers and Novo Nordisk after Novo sued Hims for selling compounded GLP-1 weight-loss drugs that mimicked branded treatments like Wegovy before the companies eventually partnered on branded drug distribution. 

“When you have Novo come on as a partner, that’s the first of many,” he said, adding that Eli Lilly and additional pharma companies could eventually deepen partnerships with Hims as well. According to Shah, drugmakers are now realizing that telehealth platforms already possess the direct-to-consumer infrastructure, customer acquisition systems and engagement capabilities that traditional pharmaceutical companies lack.

“It’s a very holy matrimony here,” Shah said. On the earnings call, CEO Andrew Dudum called Novo “a terrific partner” and said that the company is already exploring additional collaborations across the healthcare ecosystem. Hims & Hers also said it fulfilled over 125,000 Wegovy shipments within six weeks after launching direct access to Novo Nordisk’s branded GLP-1 products.

Peptides And AI Healthcare Bets

Another major theme from Shah’s interview involved peptides and vertically integrated manufacturing. Shah highlighted Hims & Hers’ ownership of peptide manufacturing facility CS Bio, saying that the company could become one of the biggest beneficiaries if the FDA expands peptide compounding later this year.

“Hims is the only public company that owns its own peptide manufacturing facility,” Shah said, adding that peptides could become “a massive, massive new vertical.” He also said that Hims could dominate the category due to consumer trust and FDA-regulated manufacturing. “Nobody wants to buy from the gray market. They’re just buying from the gray market because it’s their only option,” Shah said.

The investor further suggested that Hims now has enough scale and capital to aggressively consolidate the fragmented telehealth sector. “Hims has to step on Ro’s neck. They have to step on WeightWatchers’ neck, Noom, and all these other small little telehealth companies,” Shah said.

Last month, rival telehealth platform Ro rolled out aggressive price cuts for its weight-loss membership program, offering discounts of up to 50% on annual plans while expanding access to branded GLP-1 therapies, including Wegovy and Zepbound. 

Meanwhile, Hims outlined a broader AI-driven healthcare vision during the earnings call. CTO Mo Elshenawy said that the company is building a “closed-loop” healthcare ecosystem powered by millions of patient interactions, provider feedback systems, AI agents and wearable integrations capable of delivering increasingly personalized healthcare recommendations.

HIMS’ $1B War Chest 

Shah also pointed to Hims & Hers’ balance sheet strength and global expansion strategy as another major advantage. He noted that the company raised $1 billion in convertible debt near peak share-price levels last year, giving Hims more financial flexibility than most smaller telehealth competitors.

According to Shah, the additional cash allows Hims to acquire existing healthcare platforms internationally rather than spending years building infrastructure country by country. “We’re going to monopolize this industry and we’re going to be top dog in a very fragmented space,” Shah said.

Hims also highlighted expansion ambitions during the earnings call, particularly after acquisitions including Zava, Livewell and the pending Eucalyptus deal. CEO Andrew Dudum said that the Eucalyptus acquisition would expand Hims & Hers’ footprint across Australia, the UK, Germany, Japan and Canada.

HIMS Q1 Earnings Review

The bullish long-term views followed Hims & Hers Health's disappointing Q1 results, which triggered a sharp after-hours selloff. Revenue rose 4% year-over-year to $608.1 million but missed analyst estimates of $616.85 million, while the company posted a loss of $0.40 per share versus expectations for earnings of $0.03 per share. 

Gross margin contracted to 65% from 73% a year earlier, partly due to restructuring costs tied to the company’s pivot away from compounded GLP-1 products. U.S. revenue fell 8% to $529.9 million, though international revenue surged 969% to $78.2 million amid overseas expansion. 

Despite the weak quarter, Hims raised its full-year 2026 guidance to revenue of $2.8 billion to $3 billion and adjusted EBITDA of $275 million to $350 million. 

How Do Retail Traders Feel About HIMS?

On Stocktwits, retail sentiment for HIMS was ‘bullish’ amid a 1,459% surge in 24-hour message volumes.

One user said, “at the end of the day it’s battle to the bottom to get cheap subscribers the cheapest option”

Another user said, “I’m still bullish even with this earnings pullback. We’ll see what pre market brings”

HIMS stock has declined 44% over the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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