Why Hims & Hers Health, Inc. (HIMS) Declined on Wednesday

The stock market fell sharply anew on Wednesday, with all major indices ending in the red, as investor sentiment was dampened by Federal Chairman Jerome Powell’s bearish comments on the US economy, saying that the US’ tariff policies could drive up inflation and “move us further away from our goals.”

The tech-heavy Nasdaq dropped the hardest, down 3.07 percent. The S&P 500 declined by 2.24 percent, and the Dow Jones was down by 1.73 percent.

To come up with the list of the stocks that declined on Wednesday, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

Hims & Hers Health, Inc. (NYSE:HIMS)

Telehealth company Hims & Hers Health, Inc. (NYSE:HIMS) dropped its share prices by 8.52 percent on Wednesday to close at $26.95 apiece as investors soured on an investment firm’s conservative rating for the company.

On Wednesday, Bank of America Securities maintained its underperform rating on Hims & Hers Health, Inc. (NYSE:HIMS) but gave the company a price target of $22, an 18-percent downside from the company’s closing price on Wednesday.

According to the brokerage firm, the rating adjustment reflected the company’s slowdown in year-on-year sales growth for March, down 78 percent from the same period a year earlier.

Earlier this year, Hims & Hers Health, Inc. (NYSE:HIMS) saw a spike in sales from the Super Bowl event, but investors are now having doubts about its ability to sustain its momentum following the Food and Drug Administration’s (FDA) announcement that the bestselling Wegovy and Ozempic, manufactured by HIMS’ competitor Novo Nordisk, are back in sufficient supply and now out from the shortage list.

It can be learned that Hims & Hers Health, Inc. (NYSE:HIMS) has been making a compounded knock-off version of the two treatments that propelled its sales over the past few years.

Overall HIMS ranks 4th on our list of the stocks that declined on Wednesday. While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HIMS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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