Bearish investors decided to classify Hims & Hers Health (HIMS) as an obesity drug supplier. HIMS stock lost 9.6% on Thursday after the U.S. Food and Drug Administration said that GLP-1, made by Eli Lilly (LLY), was no longer in a shortage.
Tirzepatide has been in a shortage since 2022 when supply failed to meet excess demand.
Hims & Hers is not just a weight loss drug firm. It sells plenty of different products, such as prescription and over-the-counter drugs online. It also sells personal care products.
A broad sell-off in beauty product suppliers may explain the weakness in HIMS stock. Ulta Beauty (ULTA) lost around 8% in the last week. Selling pressure worsened when the stock traded at $400 – $410. Estee Lauder (EL) found resistance at above $103.00. The stock risks re-testing the $85 lows from September.
Luxury automobile stocks may underperform in the next week. BMW (BMWYY) and Mercedes-Benz (MBGAF) shares stabilized after China unleashed a stimulus. The country also cut mortgage and lending rates. Those automotive firms both warned that sales would weaken in China as consumers cut back on spending. As the Chinese bank stimulus catalyst fades, e-commerce stocks may pull back. They need to retrace by at least 50% before falling into discount territory.