HIMS Stock Pares Losses After-Hours: Citi Flags ‘Big Caveat’ In Amazon’s GLP-1 Push That Limits Risk To Hims Model

• Citi said Amazon’s $29 on-demand telehealth option applies only to prescription renewals, not new GLP-1 prescriptions.
• Amazon's GLP-1 program offers access to Wegovy (Novo Nordisk) and Zepbound (Eli Lilly) through Amazon Pharmacy, with pricing starting at $25/month.
• Meanwhile, Hims continues expanding beyond GLP-1 with testosterone therapies and peptide-treatment opportunities under FDA review.

Shares of Hims & Hers Health, Inc. (HIMS) pared losses in extended trading on Tuesday after Citi said Amazon’s new low-cost GLP-1 renewal option carries limits that reduce the risk to the telehealth firm’s subscription-based model.

HIMS stock snapped six sessions of gains on Tuesday to end over 4% lower at $29.76. However, shares rose more than 1% after hours. 

Citi Flags Limits In Amazon’s GLP-1 Offer

The decline in shares followed Amazon’s rollout of a GLP-1 management program through Amazon One Medical, which integrates primary care, pharmacy access, and virtual consultations into a single platform for patients seeking obesity therapies.

Citi noted that patients who are already One Medical subscribers can obtain GLP-1 prescriptions through their primary care providers on the platform. However, for non-subscribers, the newly introduced on-demand telehealth option, which starts at about $29 per visit, applies only to prescription renewals, not new prescriptions.

The brokerage also said that the renewal pathway appears limited to two renewals per year, calling this restriction a “big caveat” that reduces the likelihood for the service to become a full replacement for subscription-based platforms that typically charge monthly membership fees exceeding $100, excluding medication costs.

Citi maintained its ‘Neutral’ rating and a $24 price target on Hims shares, implying a 19% downside to current levels. 

Amazon Rolls Out End-to-End GLP-1 Model

On Tuesday, Amazon unveiled its GLP-1 management program that connects weight-loss treatment with primary care oversight, allowing clinicians to coordinate therapy alongside cardiovascular and metabolic health monitoring in a single platform. 

Through Amazon Pharmacy, the program also offers access to branded therapies, including Wegovy by Novo Nordisk and Zepbound by Eli Lilly. It also provides oral GLP-1 treatment options with insurance coverage starting as low as $25 per month for eligible patients and cash-pay pricing beginning around $149 per month for certain oral medications. 

Injectable formats are also available with cash-pay pricing starting near $299 per month. Patients enrolled in the program will receive consultations, follow-up visits, and integrated monitoring as part of the treatment workflow.

Hims Expands Beyond GLP-1

The developments also come as Hims expands into hormone health, amid regulatory tailwinds. The U.S. Food and Drug Administration (FDA) recently encouraged exploration of testosterone therapies for low libido in men with idiopathic hypogonadism, potentially widening the market. 

Hims already offers Enclomiphene, which helps the body restore natural testosterone levels, along with treatments that include Tadalafil, a common erectile dysfunction medication. It has also secured exclusive access to the oral testosterone drug Kyzatrex, with injectable testosterone options expected to follow.

Separately, upcoming FDA advisory committee meetings to review whether certain peptides can be used in pharmacy-compounded medicines could open the door for Hims to offer more peptide-based treatments through its platform.

At the same time, Hims is shifting its weight-loss offering toward FDA-approved branded GLP-1 therapies under its deal with Novo Nordisk, discontinuing compounded GLP-1 alternatives and expanding access to Wegovy alongside Ozempic for eligible patients. CEO Dudum said the company has already shipped its first Novo Nordisk medicines and remains on track to exceed a run rate of 100,000 Wegovy prescriptions per month as the rollout progresses.

How Do Retail Traders Feel About HIMS?

On Stocktwits, retail sentiment for HIMS was ‘extremely bullish’ amid a 384% jump in message volumes over the past week. 

One user said, “$HIMS is light years ahead of all 'competition' $AMZN may be shifting into more GLP-1s but $HIMS still did it first and continues to innovate in this space. Would rather be invested in innovation then copycats.”

Another user echoed a similar sentiment, saying, “Amazon isn't a competitor. It's just a pharmacy. Hims is much more than a silly pharmacy. We have been through this multiple times. It's just taking a breather before another leg up.”

HIMS stock has risen 15% over the past year. 

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

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