Shares of Hims & Hers surged on Thursday, erasing most of the losses from a sharp sell-off the day before, when the Food and Drug Administration (FDA) sent the company a letter cautioning against overstating the benefits of its weight-loss drugs.
The rebound has fueled speculation among traders that the dip was nothing more than a major bear trap.
On Wednesday, InvestorsObserver reported that the FDA had warned Hims CEO Andrew Dudum that the company’s compounded semaglutide products were being marketed with “false and misleading” claims around weight loss.
In response, Hims updated weight-loss content from its Facebook and Instagram pages to align with the FDA’s concerns, according to Hims House, a research site run by analyst Jonathan Stern.
Despite the regulatory scrutiny, Hims’ stock jumped as much as 9.6% on Thursday, clawing back its prior-day losses. The shares are now up 21% over the past 30 days and remain one of 2025’s standout performers, with year-to-date gains of 127%.
Analyst and trader Sylent described the rebound as “the mother of all bear traps,” a rally that forces short sellers to cover their positions at a loss.
Meanwhile, analyst Market Rebellion noted that Hims’ price action “obeyed the Elliott Wave map” and dismissed the FDA letter as “just noise” against the backdrop of a broader technical uptrend.
Hims isn’t cheap, but business momentum remains strong
After a roller-coaster year, Hims draws significant media attention and investor debate. The telehealth company has grown rapidly, though it also faced turbulence following a high-profile split with Novo Nordisk (NOVO) over access to weight-loss drugs.
While the prospect of legal action from Novo has faded, Hims has faced some pushback after posting its first sequential revenue decline.
A quarter-over-quarter revenue dip isn’t necessarily bearish, especially if year-over-year growth remains intact, but it can suggest the company’s explosive growth phase is beginning to level off.
Even so, Hims is trading at about 30 times next-twelve-month (NTM) EBITDA, according to technical analyst Oliver of MMMT Wealth. NTM EBITDA is a forward-looking valuation metric that compares a company’s enterprise value to its expected earnings before interest, taxes, depreciation, and amortization.
Oliver notes that while Hims’ EBITDA is projected to grow at a 51% compound annual growth rate over the next two years, “that is not necessarily cheap,” particularly given regulatory and competitive risks.
Still, Hims’ direct-to-consumer subscription model remains highly attractive. The company spans multiple in-demand verticals — from sexual health and weight management to mental health and dermatology — and projects as much as $2.4 billion in revenue this year.
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