Alright, let's get one thing straight: I'm already rolling my eyes. Hims & Hers Health (HIMS)? Another overhyped stock riding the "wellness" wave straight to the bank... for them, not you.
They're down 2.4% today? No surprise there. Investors are "looking ahead" to earnings, blah blah blah. Give me a break. It's always the same song and dance. Pump it up, promise the moon, and then watch it crater.
So, the stock "has staged several rallies that have run out of steam around $65." Translation: people bought the hype, then reality hit.
Then there's this gem: "The recent pullback has HIMS nearing a historically bullish trendline, however, meaning another short-term bounce could be imminent." Oh, a trendline? Seriously? We're basing investment decisions on lines drawn on a chart now? I swear, some of these analysts are just making stuff up.
It's within 0.75 of the 200-day moving average's 20-day average true range (ATR)? Who even understands this crap? It sounds like someone spilled alphabet soup on a financial textbook.
And get this: "This has happened four other times over the last three years, after which the stock was higher one month later three times, averaging an 18.2% gain." So, it might go up? That's your big insight? Flip a coin, you'll get better odds.
Maybe I'm being too harsh offcourse. Maybe there's something here I'm missing... Nah.
"Historically, Hims & Hers stock has a split history of post-earnings moves." Okay, so sometimes it goes up, sometimes it goes down. Thanks for clearing that up!
They dropped 12.4% in August? Sounds about right. The stock has averaged a next-day swing of 13.3%, regardless of direction. So basically, it's a crapshoot. Investors are pricing in a higher 17.1% move this time around? Well, good luck with that. More volatility just means more opportunities to lose money.
"Analysts are extremely pessimistic, with 11 of 14 in coverage sporting a 'hold' or worse rating." Finally, something I can agree with. But wait, there's a "silver lining": "there is plenty of room for upgrades, should this bearish sentiment begin to unwind."
Oh, please. Analysts are sheep. They all follow each other like lemmings off a cliff. One upgrades, they all upgrade. One downgrades, they all downgrade. It's a self-fulfilling prophecy.
More good news for prospective buyers is that HIMS tends to outperform options traders’ volatility expectations? Says who? I mean, really, who is saying this. And who cares?
Let's be real, this whole thing stinks of desperation. They're trying to spin a bad situation into a buying opportunity. They expect us to believe this nonsense, and honestly...
It's simple: don't fall for the hype. Hims & Hers might have a decent product, I don't know, I ain't used it. But the stock is a gamble, plain and simple. There are far better places to put your money than in some overvalued "wellness" company that's one bad earnings report away from oblivion.
