💊 $HIMS Stock - Can It Compete with Amazon's “Move” into Boner Pills? 💊
Overview:
$HIMS has been delivering impressive financial growth, even as Amazon attempts its way into the healthcare space with its One Medical acquisition. Amazon officially acquired One Medical on February 22, 2023, and in November 2023, it started offering discounted memberships to Amazon Prime customers. Despite Amazon, $HIMS has continued to thrive over the past year, showing resilience in the face of increased competition. The recent price dip presents a buying opportunity for investors.
$HIMS has also raised its full-year 2024 revenue guidance to a range of $1.460 billion to $1.465 billion and its adjusted EBITDA guidance to between $173 million and $178 million.
Quarterly Financial Highlights (YoY for Q3 2024):
* Revenue: $401.56M (+77.13%)
* Net Income: $75.59M (+1098.92%) – HIMS is profitable.
* Diluted EPS: 0.32 (+900%) – Significant earnings growth.
* Net Profit Margin: 18.82% (+663.47%) – Margin improvements show operational efficiency.
* Operating Income: $22.37M (+361.56%)
* Net Change in Cash: $36.22M (+588.11%)
* Over 2 million customers (+44%) with increasing revenue per customer of $67 (+24%)
[$Hims subscriber count increase and revenue increase](https://preview.redd.it/q4jyciaqf01e1.png?width=1208&format=png&auto=webp&s=a431a83bbdfd6a1db9330f643bbb2fdfb23accf7)
Amazon - Why It Matters for $HIMS:
1. Amazon’s Reach and Pricing Power: With Amazon now offering discounted One Medical memberships to Prime members, its reach and pricing power could potentially attract customers quickly, posing a challenge to $HIMS’s growth.
2. Enhanced Services for Prime Members: Amazon’s ability to bundle healthcare with Prime adds convenience for its vast user base, appealing to those who value integrated services.
3. Increased Competition: Amazon’s formal “entry” into telehealth means $HIMS and similar companies will need to differentiate themselves more strongly to retain market share.
The Bull Case for $HIMS Despite Amazon:
* Strong Financial Growth: $HIMS has shown impressive year-over-year growth in both revenue and profitability, with a loyal customer base and solid fundamentals.
* Niche Focus: HIMS focuses on personal health and wellness, including hair loss and sexual health treatments—areas that aren't the primary focus of One Medical. This specialization could help $HIMS create a loyal customer segment.
* Early Mover Advantage: HIMS has a longer-standing presence in digital health and a well-established platform, giving it an edge in areas Amazon may not emphasize.
* Privacy and Discretion: Many customers prefer a separate, private platform for personal wellness products. HIMS offers a level of discretion Amazon can’t match, which could be important for products like ED treatments. Also, Amazon’s ad-driven model might make some users uncomfortable if sensitive purchases are targeted by advertisers.
Risks:
* Amazon’s Potential to Undercut Prices: Amazon’s pricing power and ability to offer discounts through Prime could put pressure on $HIMS to stay competitive on price.
* Brand Loyalty Shift: Amazon’s backing of One Medical and integration with Prime could entice some of $HIMS's customers to switch, especially those already invested in the Amazon ecosystem.
TL;DR:
$HIMS is on a strong growth path, with impressive financials and a niche focus in the wellness and telehealth market. Amazon's acquisition of One Medical over a year ago and recent push into the space does increase competition, but $HIMS has proven resilient over the past year against Amazon and continues to improve its metrics. With a clear strategy and focus on privacy and niche offerings, $HIMS may have the staying power to thrive alongside Amazon's “release” into the space. The recent price drop could be an opportunity to buy.
Positions:
1500 shares & 10 calls @$20 1/16/26
This is my first DD, plz be gentle with this regard