Hims & Hers Stock: This Changes Everything! | $HIMS
Stocks · · 12 min read · youtube.com ↗
Hims and Hers has greatly evolved its business model, moving past just a pill dispensary to become a comprehensive healthcare platform. This shift includes new initiatives like "Labs AI," which aims to improve the customer experience and data accuracy, offering services from weight loss programs to detailed health insights. Key hires and a focus on integrating advanced technology are driving this transformation, making it a pivotal moment in the company's journey to provide more holistic patient protection and affordable care.
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00:00 Hims Reinvention
00:54 Channel Intro
01:12 Fiscal AI Sponsor
02:45 New Leadership Shift
03:55 Old Model Economics
04:49 GLP-1 Revenue Boost
05:40 Labs Membership Layer
07:07 AI Care Agent
07:57 Platform Moat Vision
09:53 Long Term Thesis
11:11 Wrap Up and Links
Transcript
Hims Reinvention
0:00 · Quietly over the past year, his and hers has changed its entire business model.
0:04 · And this is what really could make the company a 10x or 100x stock over the next 10 to 20 years. This is no longer just a pill dispensary. It's now no longer a place that you maybe go to get hair loss treatments or ED pills. It is an entire healthcare platform. That started with the hiring of Deer Jakur who came from Robin Hood who built Robin Hood Gold. It continued with Mo Elshinawi who was hired last year came from Cruz building the AI infrastructure that is going to be the future for Hims and hers. And this week we saw what labs and AI are going to combine to do for the company. I think this completes the vision of Hims and Hers as a much bigger technology and healthcare platform than what we thought about the company before. It's going to change their economics. It's going to change their incentives and it's going to change the way that they interact with customers.
0:49 · So, I want to go through exactly what we learned and how this plays into my long-term thesis with him and hers. My name is Travis Hoyam. Thanks for watching Asymmetric Investing. And if you want more from me, check out my newsletter, Asymmetric Investing.
Channel Intro
0:59 · There's a link in the screen and a link in the show notes. That's where I'm building a portfolio from zero. One of the biggest positions in that portfolio is Hims and Hers. So, if you want to follow where I'm putting my my money each month, asymmetric investing is the best place to do it. And if you are a serious investor, you need to check out Fiscal AI. They just added brokerage connections. As you can see this right here, connect your brokerage. I have Robin Hood portfolio connected and I have my asymmetric investing portfolio which is in interactive brokers. All of that is connected all in one place. So you can see how much you own of a stock, what your cost basis is, what your performance is, all your transaction history. And one of the great features I thought is news all coming in from the stocks that you own in your portfolio.
Fiscal AI Sponsor
1:41 · This is just the latest phenomenal feature coming from Fiscal. And if you've watched my videos before, you know that this is the tool that I use first. It's got all the information you need about company statistics, all the financials, all in one place and makes these really beautiful charts. It's going to pull all that data from SEC filings, from earnings releases within minutes of those reports coming out. And it's got these great key performance indicators. This is something you're not going to get anywhere else. So, how many subscribers does his and hers have? How much does each of those subscribers spend each month? You can even listen to the latest conference call. Hims and hers earnings is going to be next week.
2:13 · I'm going to listen to that on fiscal AI. The great thing right now is they do a sale twice a year. That's happening this week. By going to fiscal.aiasym, you can get 25% off any of their plans.
2:27 · This is the best deal out there for investors, whether you're an individual investor or whether you're an institution. I'm going to be using the max version here. It's got 20 years worth of data, up to 20 years worth of KPIs, and I can even export and download all that information from within fiscal AI. So, if this is a product you've been looking at, now is the time to get it.
New Leadership Shift
2:46 · It's only going to last through Thursday. Now, with his and hers, one of the reasons that I highlighted these two people coming into the company in 2025 is I think it really shifts the way that the strategy of the business has operated. If you look at Deerj's background, she was the chief product officer at Robin Hood. That was when they launched their subscription service, Robin Hood Gold. So, the idea there with Robin Hood Gold is you pay this annual fee and then you get all these benefits. This changed the economics for Robin Hood. It made made Robin Hood look much more like a business like Costco. You can say, "Hey, our profitability is going to be with the gold subscription that I'm paying for each year." But then we can actually run the profitability of each one of those products underneath that subscription in a little bit different way. So the Robin Hood Gold card, for example, you can get up to 3% cash back.
3:31 · That means that they're losing money on every single transaction, but that's okay because you're bringing more assets to the platform. So as a whole that membership program is changing the economics of Robin Hood and is changing the incentive structure of those building products within the company and also consumers. Now translate that to Hims and Hers. How can Hims and Hers take kind of a similar model into the business? Well, think about the products that Hims and Hers started with. Let's start with ED. The way that the Hims and Hers business model works is they're spending money to acquire customers.
Old Model Economics
4:04 · There's a lot that is happening on things like social media or with search digital advertising. So let's say you're spending $100 to acquire a customer and you're selling them products like this.
4:13 · So this one is $40 a month. This is $4 per use. Viagra $135 per use. But the likely revenue per user is going to be measured measured in the mid to low double digits. So, if you go back here to 2023 and early 2024, Hims and Hers monthly online revenue per average subscriber was $553, bouncing in that mid $50 ring. That can be a good business, but it was not a high margin business. In purple, you see their operating margins. Their operating margins were negative until you go into 2024. So, what happens in 2024? That's when you start to bring in GLP1s. GLP ones used to be more expensive than they are today, but these are some of the options today. The WGOI pill, $149 a month. Zepbound, $300 a month. On top of this, you have another $150 for a weight loss membership on Hims and Hers. So, now go back to this key performance indicator data. You're seeing the growth in the revenue per average subscriber.
GLP-1 Revenue Boost
5:15 · You see a little bit of volatility here.
5:17 · This is when th these products went off shortage and his and hers had to stop some of the compounding they were doing in 2025. But that's starting to trend a little bit higher. What's the reason for that? Well, part of that is his and hers is getting into higher value, higher price point products, things like GLP1.
5:33 · So, ED treatments, maybe hair loss treatments. Those are great for getting your foot in the door. But the goal is to move up higher in that value chain.
Labs Membership Layer
5:40 · But what has changed is the introduction of labs. So, this is two blood tests per year. This is the initial product that they've rolled out. Less than a dollar a day. I think it's $350 right now. And then you get insights on the Hims and Hers app. So you say, you know what, this is something that needs attention.
5:57 · Your biomarkers are telling us that you can improve your cholesterol, your testosterone, and all kinds of different things that they're testing with these labs. Some things are an optimal condition. Some things fall into this red category. Then Hims and Hers can help create an action plan for you. This is the this is where the next step of revenue generation comes for him from Hims and Hers. So if I'm getting my labs with him and hers, I did this in November of last year. You get your labs, you get the results back, and you say, "Here's some things you can improve. Here are some options from a prescription standpoint, and ways that you can change what you're doing. You get a little bit more activity, maybe eat a little bit better, maybe take a little bit of stress out of your life.
6:35 · Depending on what the component is, there's different suggestions that they make. And then over time, you're going to be able to measure that progress. How do your biomarkers change over time?"
6:43 · So, you can see where him and hers is trying to become this information layer.
6:47 · They're pulling in information from labs. They're pulling in the information that you're offering up for your healthcare needs in the Hims and Hers app. I can see in the future pulling information from smart watches and things like that that are tracking your heart rate, that are tracking your stress level, your sleep, and then based on all of these inpoints, they're going to give you suggestions for how to live a healthier life. This is where Moinawi comes in and this week's announcement about Labs AI, the first AI care agent from him and hers. So now when you go into him and hers hers labs, you can just talk to an AI and say, "Hey, here what should I be doing to improve these biomarkers? Now I've actually got access to this." And what they're doing is they're actually pulling the information from your labs and all of these biomarkers that they're testing. And then they're giving you answers with that context. So it's now not just a deterministic, okay, your reading is this, so therefore I'm going to give you these suggestions. There's a little bit more information and analysis that goes into it. You can see from this here, this gives you some examples of what asking the AI questions and then it's able to go and respond with, hey, here's what's going on with your information and here's better. Here's ways that you're going to be able to help improve your health. So, why is this important?
AI Care Agent
Platform Moat Vision
7:58 · Why does this matter for him and hers and their moat around the business in the future and their financials? First of all, how are people going to interact with him and hers? I think that the desired outcome for the company is you pay for a membership to him and hers.
8:13 · Remember I said that they introduced that weight loss membership. Labs is a little bit like a membership in the same way. So you're paying $350 and then you get access to all this labs information, but that's a way to get somebody in the door and get them invested in the Hims and Hers ecosystem. Then you layer on treatments on top of that. So we talked about weight loss treatments, but Hims and Hers has ED, hair loss, testosterone. They're adding more and more things that they're able to help their customers with. So now, if you're building much more of a platform, so you say, "I have Travis's information about what he could improve with his health, I'm going to be able to offer up any sort of solution, whether that's a generic solution, whether that's an injectable, it's a pill, that Hims and Hers is going to start to know my preferences and my health. That's where the AI tool gets to be part of that sticky ecosystem that I think a membership to Hims and Hers is really going to end up being. And remember, this is a digital platform. Him and hers is going to be able to track your health over a long period of time. It's going to be able to pull in information from a smartwatch, from a Whoop band. I think that's ultimately f the future. We know that the company is interested in smart devices and has hired for those positions in the past. So, I think it's likely that data ecosystem is only going to get stronger. And as you have that data ecosystem, now you're able to provide better information, get better feedback. How am I actually eating?
9:34 · What's the impact of a GLP1? What's my chole cholesterol level over time?
9:38 · What's my testosterone level over time?
9:41 · These are things that can be a fully digital relationship with him and hers.
9:45 · And you can get likely better outcomes than you can get with a doctor who will only spend a few minutes with you when you go in for an annual visit. So this so I think this is the vision. This is the business model change for Hims and Hers. No longer is it spending money on customer acquisition to sell them a prescription pill one time. This is now a much bigger vision. Hims and Hers wants to attract customers who are going to be long-term users of the platform, who are going to track their health through labs. They've even got early cancer screenings. So, if you're making that kind of investment to do your labs and put all of this data into him and hers, it means you're likely going to be a long-term customer. And if those customers are going to be spending not only several hundred a year getting their labs, but also potentially several hundred more improving their health over time. Right now there's a relatively small amount of products, but think about when peptides come to the market likely in the summer. That's going to increase the number of opportunities for Hims and Hers to sell new products. And you already have that subscription, that membership business model that's already in place. So now you don't necessarily have to make as much money on each of those peptides prescriptions. That's going to create different incentives for him and hers to just grow the ecosystem to deepen that relationship with customers. That's how you build long-term value. That's ultimately why I'm excited about this company long term. I see the vision. I think they're doing the right things. It's going to be a bumpy ride, but this is why this is one of the biggest positions in the asymmetric portfolio. Let me know what you think about him and hers. Leave your comments in the comments section below.
Long Term Thesis
Wrap Up and Links
11:14 · And don't forget to check out fiscal.ai/asym.
11:18 · Like I said, this is the best tool for tracking the companies and doing research on investments that you might be looking at. And this is a sale that's only going to last for a few days. So, that's how you get 25% off is using that link. Thanks for watching everybody.
11:30 · We'll see you here next time.