We recently compiled a list of the 10 Stocks Record Biggest Double-Digit Drop on Friday. In this article, we are going to take a look at where Hims & Hers Health, Inc. (NYSE:HIMS) stands against the other stocks.
The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.
The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.
Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.
To come up with Friday's biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health, Inc. (NYSE:HIMS) nosedived by 25.79 percent on Friday to finish at $49.28 apiece as investors sold off on news that the supply shortage for US' bestselling weight loss and diabetes drugs Wegovy and Ozempic has already been addressed.
According to the Food and Drug Administration, supply is currently meeting or exceeding demand, and Novo Nordisk has developed a product inventory to cover future demand.
The news took a hit on Hims & Hers Health, Inc. (NYSE:HIMS), which has been making a compounded knock-off version of the blockbuster treatments, at a time when it announced the purchase of a plant to manufacture the class of drugs that includes Wegovy and Ozempic.
US regulations allow compounding pharmacies to copy branded medicines that are facing supply shortages. Wegovy and Ozempic have been in shortage in the US for already two years.
Overall HIMS ranks 2nd on our list of Friday's biggest losers. While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Disclosure: None. This article is originally published at Insider Monkey.