What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 9.2% in the afternoon session after Bloomberg reported that Visa enrolled the telehealth company in its Acquirer Monitoring Program following a surge in customer credit card disputes in its weight-loss subscription business.
According to the report, the company faces an estimated $75,000 penalty after dispute rates exceeded acceptable limits. A spokesperson told Bloomberg the company has seen "a relatively small number of disputed charges" and that checkout is clear about membership and medication costs. The billing scrutiny followed a recent update from the FTC, reported the previous month (July 29th) alleging deceptive billing and cancellation practices, claims the company has stated it will vigorously defend against.
The shares closed the day at $31.02, down 8.3% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hims & Hers Health? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 41.7% on the news that the company announced a collaboration with drugmaker Novo Nordisk to sell its popular GLP-1 weight-loss drugs, which also resolved a recent legal dispute. The deal marked a surprising turn, as Novo Nordisk had been in a legal battle with Hims & Hers over the sale of compounded versions of its blockbuster drugs. As part of the new partnership, Hims & Hers gained the ability to offer FDA-approved medications like Ozempic and Wegovy directly on its platform. In return, the company planned to limit its offering of compounded semaglutide and stop advertising those products. Following the announcement, Novo Nordisk dismissed its lawsuit against the company, signaling an end to their feud. The agreement was viewed as a strategic shift for Hims & Hers, moving it from a market disruptor to a more established healthcare provider.
Hims & Hers Health is down 7.1% since the beginning of the year, and at $31.04 per share, it is trading 50.5% below its 52-week high of $62.76 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $4,015.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
