Hims soars after “choose-your-own-adventure” earnings report
There’s a possibility Tuesday’s price jump is the result of the many traders short on Hims covering their positions.
Hims & Hers rose more than 17% on Tuesday after whipsawing in after-hours trading Monday evening as investors digested a nuanced earnings report.
The results had a mix of good and bad news, giving both bears and bulls something to point to. After a tug of war, it appears the bulls have won, sending the stock rising. Here’s a breakdown of the news.
Shot: Hims reported a slowdown in its core business (impotence medications) and gave a weak guidance for second-quarter revenue while reiterating its guidance for the full year. Even Wall Street’s expectations, which are above the company’s guidance, forecast a quarterly decline in revenue — a first for Hims.
Chaser: The company beat the Street’s expectations for the first quarter, saying it would add new categories by the end of the year and expand internationally. It also announced that it hired a seasoned Amazon veteran as COO earlier in the day.
The stock is now up more than 77% in the past month. There’s a possibility Tuesday’s price jump is the result of the many traders short on Hims covering their positions in a good old-fashioned short squeeze.
