Hims & Hers Falls on CEO’s Palestine Support: Despite Clarifying, it May Be Too Late for HIMS

As more and more college campuses become protest centers for the Israel and Palestine conflict, the CEO of Hims & Hers Health (HIMS) made comments that sent his stock down more than 10% last week.

Andrew Dudum expressed support for those brave enough to speak out against Israel saying that he and many other CEOs would be proud to hire individuals taking a stand. 

This was a dramatically different stance from many other company CEOs and spokespeople who vowed not to hire those who protested Israel’s role in the conflict, such as Palantir CEO Alex Karp – who happens to be Jewish. He went as far as to say these protestors should be shipped off to North Korea. 

Dudum was quickly shown why he was one of the only individuals to oppose Israel – as HIMS lost more than $210 million in market cap in a single day. The stock continued to fall throughout the weekend as well.

So, Dudum took to Twitter last night in an effort to clean the mess up and clarify his comments – saying that he in no way supports antisemitism, violence, intimidation, or bigotry of any sort. He says that every student has a right to feel safe without fear of harm or being targeted for who they are.

He did double down saying that those who are protesting peacefully should continue to exercise that right, though. He pointed out the importance of the right to free speech as part of our democracy, and once again praised the courage these students are exhibiting.

It’s worth noting that Dudum does have ties to Palestine and Jewish heritage, appearing to be an unbiased opinion on the conflict. Both of his children are descendants of Palestinian refugees and Holocaust survivors from Poland. He sees both sides of the story and ultimately hopes for peace.

Further to that point, Dudum referenced comments he made condemning the horrific Hamas attack back in October alongside support for Israel, showing that ultimately, he doesn’t support one side or the other – he supports freedom and peace. 

Politics and religious conflict aside, HIMS has begun to recover so far today after Dudum’s crisis management efforts – the stock is up more than 4%. However, we’ve taken a look at this situation through the VectorVest stocks software and believe it may be too late. Here’s why.

HIMS Has Poor Upside Potential, Safety, and Timing - It’s Time to Sell This Stock

VectorVest is a proprietary stock rating system designed to help you win more trades with less work and stress. It’s all based on 3 simple ratings that give you clear, actionable insights: relative value (RV), relative safety (RS), and relative timing (RT).

Each sits on its own scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy. Better yet, you’re given a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what we uncovered for HIMS:

• Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. It’s a far superior indicator than the typical comparison of price to value alone. HIMS has a poor RV rating of 0.81.
• Poor Safety: The RS rating is a risk indicator computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 0.80 is poor for HIMS.
• Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year. HIMS has a poor RT rating of 0.73 after losing more than 19% in the past month.

The overall VST rating of 0.78 is poor for HIMS, and the stock is rated a SELL right now. If you’re currently invested in this stock or are wondering if you should capitalize on this price dip, take a moment to learn more with a free stock analysis at VectorVest and make your next move with complete clarity!

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VectorVest advocates buying safe, undervalued stocks, rising in price. HIMS took a massive hit last week after its CEO spoke out against Israel in the form of support for pro-Palestine protestors. Even after walking his comments back, the stock has poor upside potential, safety, and timing.

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