Hims & Hers Health (HIMS) Stock Soars: What’s Driving the Surge and Should You Buy Now?

Hims & Hers Health (NYSE:HIMS) shares are back in the spotlight after a turbulent June that has reshaped near-term expectations for HIMS stock investors. The digital health company, best known for telehealth prescriptions in sexual health, dermatology and weight management, is navigating a mix of regulatory headwinds and bold expansion moves—factors that have kept trading volumes elevated and search traffic surging. HIMS stock price action After rallying more than 80 % year-to-date, HIMS stock traded near $64 ahead of the latest headlines, placing the market cap just under $14 billion. The climb has been fueled by explosive revenue growth—up 56 % in 2024—but the uptrend paused this week as fresh news rattled sentiment. Novo Nordisk ends Wegovy collaboration On 23 June, Novo Nordisk said it will halt its collaboration with Hims & Hers over the telehealth sale of weight-loss drug Wegovy, citing concerns about compounded versions of semaglutide on the platform. The reversal jeopardizes a revenue stream analysts expected to exceed $725 million in 2025 and raises questions about margins in the fast-growing obesity segment. HIMS stock slipped nearly 6 % on the headline before paring losses, highlighting investor uncertainty around the company’s weight-loss roadmap. Regulatory headwinds and cost cuts The Novo news lands just weeks after Hims disclosed a 4 % workforce reduction to offset potential pressure from FDA crackdowns on compounded GLP-1s. Management insists it can continue offering “personalized” dosage programs, but traders are bracing for short-term volatility as U.S. regulators and drugmakers tighten supply channels. Expect headline risk around semaglutide shortages, FDA rulings and potential litigation to keep implied volatility high. European growth catalyst: ZAVA acquisition Balancing the U.S. regulatory cloud, Hims is pressing ahead with international expansion. On 3 June the company agreed to acquire European telehealth operator ZAVA in an all-cash deal, unlocking immediate footprints in the UK, Germany, France and Ireland. ZAVA’s 1.3 million active customers and 2.3 million annual consultations give Hims scale to diversify beyond U.S. reimbursement dynamics. Management projects the transaction will be accretive by 2026—an outlook Wall Street views as critical for sustaining the premium multiple on HIMS stock. Analyst sentiment and valuation Sell-side targets on HIMS stock range from $25 to $68, with the median implying downside after the year’s run-up. Bulls point to a 56-63 % revenue CAGR through 2025, gross-margin leverage toward 80 %, and a capital-light model that can translate into free-cash-flow inflection next year. Bears counter that regulatory shifts could compress the lucrative GLP-1 channel just as customer acquisition costs creep higher overseas. At roughly 10× forward sales, HIMS stock already trades richer than peer telehealth names Teladoc and Ro, demanding flawless execution. Key technical levels to watch • $58–$60: 50-day moving average and first major support • $68.74: February all-time high—breakout level if bulls regain control • $52: Volume-weighted average price (VWAP) from the January gap-up; loss of this zone could trigger profit-taking toward $45 What’s next for HIMS stock? Near term, investors will parse regulatory updates on compounded semaglutide and any renegotiation with Novo Nordisk or rival drugmakers. Longer term, integration milestones for ZAVA and progress toward profitability will determine whether HIMS stock justifies its growth premium. Traders comfortable with elevated volatility may view pullbacks into the mid-$50s as an opportunity, while risk-averse holders could wait for clarity on GLP-1 supply chains before adding exposure. Bottom line HIMS stock sits at the crossroads of explosive telehealth demand and tightening weight-loss drug oversight. If management can offset U.S. regulatory friction with European scale and maintain its subscription flywheel, the bullish thesis remains intact. Otherwise, a rerating toward traditional health-care valuation multiples is possible. Keep the ticker on your radar—the next FDA update or acquisition headline could set the tone for HIMS stock through the second half of 2025. (Disclosure: The information provided is for educational purposes only and does not constitute investment advice.)