Late Friday, Amazon said eligible customers with commercial insurance could pay as little as $25 for a one-month supply of Novo Nordisk’s weight-loss drug Wegovy.
- Amazon Pharmacy's low-priced Wegovy rollout raises fresh concerns about pricing power and market share for telehealth players like Hims.
- Bank of America and Citi have already warned that HIMS' 2026 growth and margins look stretched, as GLP-1 competition intensifies and the company remains off Novo's partner list.
- Despite rising short interest and valuation worries, Stocktwits sentiment remains 'extremely bullish,' with traders betting the selloff improves risk-reward.
Shares of Hims & Hers Health Inc. (HIMS) are set to open the new trading week in the red, down nearly 1.7% in premarket trading on Monday, as investors reacted to fresh competitive pressure in the weight-loss drug market and renewed Wall Street skepticism.
The stock came under pressure after Amazon Pharmacy announced it would now offer Novo Nordisk's Wegovy weight-loss pill at aggressively competitive prices, intensifying fears around pricing power and market share for telehealth providers like Hims.
Late Friday, Amazon said eligible customers with commercial insurance could pay as little as $25 for a one-month supply, while uninsured customers can access the drug through a cash-pay option starting at $149 per month. Amazon Pharmacy said it will deliver the medication nationwide and plans to make Wegovy available through its physical kiosks in the coming weeks.
Analyst Downgrades Add To Pressure
Adding to the bearish tone, Bank of America lowered its price target on Hims & Hers and reiterated an 'Underperform' rating last week. The firm warned that 2026 consensus estimates for revenue growth and EBITDA margin expansion appear overly optimistic.
Citi echoed similar concerns, noting that Novo Nordisk's decision to roll out Wegovy in the U.S. could broadly pressure Hims' GLP-1 business in 2026. The firm also noted that Hims' being left off Novo's official partner list once again is a sign of ongoing disagreements around Hims' compounded semaglutide strategy.
Retail Stays Optimistic On HIMS
Despite sell-side caution, retail sentiment on Stocktwits for HIMS remains upbeat, with bulls citing its diversified telehealth platform, vertical integration, and other factors.
Sentiment on Stocktwits remained 'extremely bullish' heading into Monday's open, even as the stock is down nearly 4% year-to-date. Weekly message volume surged more than 340%, while the number of followers has more than doubled over the past year.
"$HIMS ready for a promising week here… at this valuation, the risk vs reward is that much better. I dare bears to keep shorting," one bullish user wrote.
https://stocktwits.com/eatsleeptrades/message/641484627
Another retail trader expects HIMS to rally about 14% by Tuesday.
HIMS Short Interest, Valuation Risks Linger
Still, caution remains the dominant theme on Wall Street. Short interest has climbed to nearly 29%, up from about 19% a year ago, according to Koyfin data.
Of the 14 analysts covering the stock, eight rate it a 'hold', with the rest evenly split between ‘buy’ and ‘sell’. The group's consensus price target implies HIMS is trading at roughly a 37% premium, underscoring concerns that much of its growth optimism may already be priced in.
Last week, CEO Andrew Dudum said the company is leaning further into a consumer-led healthcare model in 2026, even as analysts grow more cautious about margins and the near-term pressure on earnings.
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