A screenshot of Hims & Hers’ Super Bowl commercial (Sherwood News)

Hims slips after US lawmakers introduce bill cracking down on compounding

Analysts at Citi said that the bill presents a headwind for Hims.

Hims & Hers slipped on Wednesday after members of Congress introduced a bill that would limit its ability to sell copies of blockbuster weight-loss drugs made by Eli Lilly and Novo Nordisk.

The bill, “Safeguarding Americans from Fraudulent and Experimental (SAFE) Drugs Act of 2025,” is sponsored by Rep. Rudy Yakym III and Rep. Andre Carson, both of Indiana, where Lilly is headquartered. The bill would raise the bar for when it is legal to dispense compounded versions of popular weight-loss drugs, an industry that has exploded in the past couple of years.

Analysts at Citi said that the bill presents a headwind for Hims. It would “significantly curtail [Hims’] ability to compound GLP-1s,” the product category where the company has seen the most revenue growth in the past year, the analysts said in a Wednesday morning note.

Under federal law, compounding pharmacies can sell exact copies of a branded medication only when it is in a shortage. Lilly and Novo’s GLP-1s were taken off the Food and Drug Administration’s shortage list earlier this year, meaning compounding pharmacies could only continue selling bespoke versions for individual patients.

Telehealth companies like Hims have continued to market compounded GLP-1s, often referring to them “personalized.” The bill would raise the bar for when that is allowed, requiring a doctor to determine whether a compounded version creates a “significant difference” over the commercially available version sold by drugmakers.

The drugmakers have pushed back on telehealth companies’ claim of “personalization,” arguing that the drugs are mass produced and not made for specific patients like the law intends. Lilly and Novo have taken some of these companies to court, and have for the most part lost. The drugmakers have also urged the FDA to up enforcement, but it shares regulatory responsibility with a patchwork of state regulators.

The SAFE Act may empower the FDA to crack down on compounders, which have been nibbling away at drugmakers’ market share.

Hims did not immediately respond to a request for comment.

Another 2026 outlook Steve Sosnick Chief Strategist Interactive Brokers

Interactive Brokers’ chief strategist sees reasons for caution in ’26

With the looming shift in Fed leadership and growing concern about the AI trade, Interactive Brokers’ chief strategist is penciling in modest losses for stocks next year.

Matt Phillips2h

Matt Phillips2h

EchoStar rises as analysts upgrade stock ahead of potential SpaceX IPO

EchoStar rose Wednesday as Wall Street digested recent reports that Tesla CEO Elon Musk’s SpaceX is planning an IPO next year.

Analysts at Morgan Stanley upgraded satellite operator EchoStar — the current owner of Dish Network and Boost Mobile cell services — to “overweight” (or buy) from “equal weight” (or hold) and upped their price target for the stock to $110 from $82.

In September, EchoStar struck a $17 billion deal — $8.5 billion in cash and $8.5 billion in SpaceX stock — to let SpaceX use some of its spectrum rights. EchoStar expanded that deal in November, selling additional spectrum rights to SpaceX for $2.7 billion in stock.

So, a massive IPO valuation for SpaceX would obviously be a good thing for EchoStar shareholders.

Morgan Stanley analysts wrote:

“EchoStar is receiving SpaceX shares at $212 per SpaceX share. Every $100 of SpaceX share price equals $18/SATS share in value, or 20% to SATS equity. The WSJ reported that SpaceX is launching a secondary sale valuing the company at $800bn, although the CEO denied that was the case. At that $400+/share valuation, our SATS bull case would move to $150.”

EchoStar’s surging performance this year — it’s up 330% — has largely come as the company has shifted to selling access to its stockpile of spectrum rights after pressure from the Trump administration’s FCC.

In August, it inked a deal to sell spectrum rights to AT&T for $23 billion in cash, sending its shares up 70% in a single session. Morgan Stanley analysts see continued strong demand for spectrum assets from wireless companies as another reason for optimism around EchoStar shares.

“Spectrum is an appreciating asset,” they wrote. “And we expect both Verizon and T-Mobile to be aggressive.”

Luke Kawa4h

It’s cyclicals over speculation ahead of the Fed meeting

“Sell your high-flying winners and speculative stocks ahead of the Fed, but the US economy is fine” seems to be the market narrative du jour.

The likes of Bloom Energy, IREN, Opendoor Technologies, Rigetti Computing, IonQ, and Oklo all fell at least 2.5% in early trading. Meanwhile, a Goldman Sachs basket that tracks the performance of cyclical stocks relative to more defensive companies is working on its ninth straight day of gains, which would be its longest winning streak since 2017. The SPDR S&P Regional Banking ETF, another very economically relevant part of the market, is also trading to the upside.

Goldman Sachs’ index of high-beta momentum longs (that is, stocks that have been trending higher) is down about 1.5% in early trading, while the opposite group, high-beta momentum shorts, is enjoying a nice bounce.

In other words, it looks like traders are taking down some risk in volatile long/short trades ahead of the US central bank’s final meeting of the year amid fears of a so-called “hawkish cut.” Speculative stocks, and in particular small-caps, had been buoyed by the resumption of rate cuts this year.

Matt Phillips4h

Palantir rises on Navy deal announcement

Palantir rose early Wednesday after officially announcing a new deal — valued at $448 million — with the US Navy to manage its submarine maintenance and supply chain.

While Palantir has been rapidly building its business selling software that helps private enterprise companies better use AI technology, its largest customer remains the US government.

J. Edward Moreno5h

Nextdoor soars after Eric Jackson, architect of Opendoor rally, lays out bullish thesis

Nextdoor rose by more than 30% in premarket trading after hedge fund manager Eric Jackson, the architect behind the rally in Opendoor Technologies earlier this year, said he is long on the neighborhood social media platform.

In a thread on X, Jackson explained that Nextdoor has an undervalued opportunity to leverage AI, similar to Opendoor or Carvana, another company he has been bullish on. “Nextdoor checks every layer and is ready like them for a massive re-rating,” said Jackson, head of Toronto-based EMJ Capital, referring to other stocks he is bullish on.

Nextdoor generates revenue predominantly through advertising sales, and has not yet reported a profitable quarter since going public in 2021. As of market close on Tuesday, the company was down about 17% this year and 80% since its IPO.