To The Moon

The market panicked after President Trump vowed to slash weight-loss drug prices to $150. In the chaos, $Hims & Hers Health Inc.(HIMS)$  stock plummeted, with investors assuming its business was impacted.

Hims is a telehealth platform, not just a compounder. They are a reseller.

A massive price drop will lead to a massive increase in sales volume. The single biggest barrier to these drugs is the $1,000+ price tag. If that barrier is removed, millions of new customers will flood the market. Where will they go? They will seek the easiest, most frictionless platform. Hims, with its powerful brand and simple telehealth service, is perfectly positioned to capture this enormous new wave of demand.

Even if the profit per prescription shrinks, it will be overwhelmed by a gigantic increase in the number of prescriptions they manage. Hims won't just survive this; they will benefit from it.

The stock was "wrongly killed" by investors reacting to a headline, not the business model. They see a threat to a single product line and are blind to the massive opportunity it creates for the entire platform.