New York, Jan 9, 2026, 15:52 EST — Regular session
- Hims & Hers shares fall as Amazon Pharmacy enters the oral GLP-1 weight-loss market with Wegovy
- A Bank of America analyst cut his target, flagging 2026 spending and margin risk
- Investors are looking for the next read on pricing and demand in weight-loss subscriptions
Shares of Hims & Hers Health, Inc (HIMS.N) fell 5.3% to $32.06 on Friday, after Amazon Pharmacy said it now offers Novo Nordisk’s Wegovy weight-loss pill, raising the pressure on telehealth sellers chasing obesity drug demand. The stock hit an intraday high of $34.35 before sliding to a session low of $32.06.
The move matters because weight-loss has become a key battleground for online healthcare platforms, and the market has started to treat GLP-1 drugs — medicines that can curb appetite and drive weight loss — as a price game as much as a growth story. Hims reported 2.47 million subscribers in its most recent quarter and has pointed to GLP-1 sales as a key driver into 2026.
On Thursday, Bank of America analyst Allen Lutz cut his price target on Hims to $29 from $32 and kept an underperform rating, saying 2026 consensus expectations for sales and EBITDA margins were too high. EBITDA is a common profit yardstick that strips out interest, tax and some non-cash costs. Lutz called 2026 “a big investment year” and said margin expansion assumptions “seem overly optimistic,” according to the note. TipRanks
Chief executive Andrew Dudum, in a post dated Jan. 8, said the company is leaning into a consumer-led model and would keep investing in its international presence and partnerships, while pushing further into areas such as lab testing and AI tools. “2026 is the year of the individual in healthcare,” Dudum wrote. Hims Newsroom
For traders, the near-term question is whether Amazon’s entry and pricing push customers to shop around, forcing platforms like Hims to spend more on marketing or give up margin to hold growth. The selling on Friday suggested investors are bracing for more competition headlines, not just the next earnings print.
But the downside case is not clean. Wider availability of an FDA-approved pill could expand the overall pool of patients seeking treatment, and telehealth sellers can still bundle ongoing care and recurring subscriptions across categories beyond weight loss, including dermatology and mental health.
The next hard catalyst is earnings: Nasdaq estimates Hims will report around Feb. 23, with investors watching for 2026 spending plans, any reset to profit expectations and signs of pricing pressure in weight-loss programs.
