• Early Bird
  • Posts
  • Hims & Hers' Slim Margins đź’Š

Hims & Hers' Slim Margins đź’Š

Plus, Zoom's inadequate outlook.

February 25, 2025

In partnership with

Today is Tuesday, February 25, 2025.

The Early Bird Index today is 78.61

New to this newsletter? Sign up here

Hims & Hers' Slim Margins đź’Š

The telehealth company Hims & Hers Health (NYSE: HIMS) plunged 18.19% in after-hours trading on Monday after posting questionable financial earnings results.

Financials: The company reported earnings of 11 cents per share in the past quarter, which was in-line. It also reported revenue of $481.13 million, which was better than expected.

Powering the Story: Hims & Hers, which began selling weight loss ​​GLP-1 medications in 2024, reported a gross margin of 77% in the quarter, down from 83% last year. 

Early Bird’s Nest Egg Gains: Investors should be cautious about Hims & Hers' dependency on its weight loss drug business, which has shown signs of impacting the company's margins. Since the company said its weight-loss offerings were “strategically priced to attract new customers,” Hims and Hers might be sacrificing short-term profitability for market share.

Final Thoughts: The stock is up about 400% (wow!) in the past 12 months.

Smart Investors Are Betting On A.I. Stocks—Are You?

Experts say Trump’s $500B A.I. investment plan could transform the industry.

Meanwhile, a small but ambitious A.I. healthcare company just went public after eight years of innovation, securing $18M in funding and partnering with industry giants.

With a $120M market cap and shares still under $2, this stock may not stay cheap for long.

Notables

Notable Earnings Today: Home Depot (NYSE: HD), CAVA Group (NYSE: CAVA), AMC Entertainment (NYSE: AMC), Planet Fitness (NYSE: PLNT), Keurig Dr Pepper (Nasdaq: KDP), Lucid Group (Nasdaq: LCID), Instacart (Nasdaq: CART), Caesars Entertainment (Nasdaq: CZR), Lemonade (NYSE: LMND), Krispy Kreme (Nasdaq: DNUT), Workday (Nasdaq: WDAY), Intuit (Nasdaq: INTU), Boston Beer (NYSE: SAM), Jack In The Box (Nasdaq: JACK), ZipRecruiter (NYSE: ZIP), ZoomInfo (Nasdaq: ZI), Axon (Nasdaq: AXON), DigitalOcean (NYSE: DOCN), First Solar (Nasdaq: FSLR), Itron (Nasdaq: ITRI), Zeta Global (NYSE: ZETA), American Tower (NYSE: AMT), AdaptHealth (Nasdaq: AHCO), Agilon Health (NYSE: AGL), Allot (Nasdaq: ALLT), Armstrong World Industries (NYSE: AWI), B&G Foods (NYSE: BGS), Camping World (NYSE: CWH), CCC Intelligent Solutions (Nasdaq: CCCS), Cipher Mining (Nasdaq: CIFR), Coupan (NYSE: CPNG), Day One Biopharmaceuticals (Nadaq: DAWN), Driven Brands (Nasdaq: DRVN), Elanco Animal Health (NYSE: ELAN), Expro Group (NYSE: XPRO), Flywire (Nasdaq: FLYW), GFL Environmental (NYSE: GFL), Huron Consulting (Nasdaq: HURN), Inogen (Nasdaq: INGN), Integra (Nasdaq: IART), Jazz Pharmaceuticals (Nasdaq: JAZZ), Keysight Technologies (NYSE: KEYS), Kontoor Brands (NYSE: KTB), LGI Homes (Nasdaq: LGIH), Light & Wonder (Nasdaq: LNW), LivaNova (Nasdaq: LIVN), Maravai Life Sciences (Nasdaq: MRVI), Matson (NYSE: MATX), Merit Medical (Nasdaq: MMSI), Novanta (Nasdaq: NOVT), OUTFRONT Media (NYSE: OUT), Pinnacle West (NYSE: PNW), Portillo's (Nasdaq: PTLO), PROCEPT BioRobotics (Nasdaq: PRCT), Revolve Group (NYSE: RVLV), RxSight (Nasdaq: RXST), Sealed Air (NYSE: SEE), Sempra Energy (NYSE: SRE), Shoals Technologies (Nasdaq: SHLS), Sprout Social (Nasdaq: SPT), SPX Technologies (NYSE: SPXC), Supernus Pharma (Nasdaq: SUPN), The Baldwin Group (Nasdaq: BWIN), TopBuild (NYSE: BLD), Vaxcyte (Nasdaq: PCVX), WEBTOON Entertainment (Nasdaq: WBTN), Workiva (NYSE: WK), Xenia Hotels (NYSE: XHR), Xometry (Nasdaq: XMTR).

Notable IPOs Today: Basel Medical Group Ltd Ordinary Shares (Nasdaq: BMGL), Drugs Made In America Acquisition Corp. Ordinary Shares (Nasdaq: DMAA).

Notable Equity Crowdfunding Campaigns Ending Today: Three Of Strong (StartEngine), Printera (StartEngine), Marinas Bistro & Rum Bar (Honeycomb).

Notable Economic Events Today: S&P Case-Shiller Home Price Index (9:00 p.m. ET), CB Consumer Confidence (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Zoom's Inadequate Outlook

After posting mixed financial earnings results on Monday, Zoom Video Communications (Nasdaq: ZM) fell 3.01% in after-hours trading.

Financials: Zoom reported earnings of $1.41 per share in the past quarter, which was better than expected. Revenue only reached $1.18 billion, which was lower than expected.

Final Thoughts: The company only expects revenue to be between $4.78 billion and $4.79 billion in 2025. Investors wanted a stronger outlook.

Solana Drops As Problems Continue

As part of a broader market correction in cryptocurrency, Solana declined by about 14% on Monday.

Final Thoughts: In recent days, millions of Solana coins have been taken out of the market. The price is down about 45% in the last 30 days.

That Was Ugly: Tempus AI Stock Drops After Company Posts Q4 Results (Investor’s Business Daily)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Show Your Support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.

The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.