$1,000 in Hims & Hers at IPO: Value Today

Picture this: it’s early 2021, and you’re scrolling through financial news when a new player in telehealth catches your eye. Hims & Hers, a company offering virtual healthcare for everything from hair loss to mental health, just went public. You decide to take a chance and drop $1,000 into their stock. Fast forward to today—how much would that investment be worth? Spoiler alert: the answer might surprise you, and it’s a story worth unpacking.

The Rise of Hims & Hers: A Telehealth Trailblazer

Hims & Hers burst onto the scene in 2017, aiming to make healthcare accessible, discreet, and frankly, less awkward. By 2021, it was ready to take the public markets by storm, not through a traditional IPO but via a SPAC merger—a trendy move at the time. The company’s focus on direct-to-consumer healthcare resonated with a generation tired of long waits and stuffy doctor’s offices. But what’s made it a standout in the stock market?

Healthcare shouldn’t be a hassle. It should fit into your life, not disrupt it.

– Telehealth industry expert

From its sleek app to its partnerships with major players, Hims & Hers has tapped into a growing demand for convenience. Its recent move to offer a popular weight-loss drug has sent its stock soaring, but more on that later. First, let’s dive into the numbers that matter: your hypothetical $1,000 investment.

Your $1,000 Investment: The Breakdown

Hims & Hers began trading publicly on January 21, 2021, with shares priced around $13.10. For $1,000, you could’ve snagged about 76 shares. As of May 5, 2025, the stock closed at $41.88, reflecting a meteoric rise. Let’s crunch the numbers to see what that initial investment looks like today across different time frames.

These figures are eye-popping, especially if you caught the stock at its 2022 low. A $1,000 investment at that point would be worth over $13,000 today—a 1,247% return. Even buying at the IPO would’ve turned your $1,000 into $4,188, outpacing many traditional investments. But what’s driving this growth, and is it sustainable? Let’s explore.

Why Hims & Hers Stock Skyrocketed

I’ve always believed that companies solving real problems tend to win in the long run, and Hims & Hers is a prime example. Its growth isn’t just hype—it’s backed by smart moves and market trends. Here are the key drivers behind its stellar performance:

• Telehealth Boom: The pandemic shifted healthcare online, and Hims & Hers rode that wave, offering virtual consultations for sensitive issues like erectile dysfunction and anxiety.
• Weight-Loss Drug Partnership: A recent deal to offer a blockbuster weight-loss medication boosted shares by over 20% in a single week, tapping into a massive market.
• Strong Financials: First-quarter 2025 revenue hit $586 million, crushing expectations, with earnings per share at 20 cents versus a forecast of 12 cents.
• Millennial Appeal: The company’s branding speaks to younger consumers, making healthcare feel modern and approachable.

The weight-loss drug deal, in particular, is a game-changer. When shortages limited access to these medications, Hims & Hers stepped in with custom alternatives. Now, with a direct partnership, it’s positioned to capture a slice of a multi-billion-dollar market. But it’s not all smooth sailing—competition is fierce, and the stock’s volatility can’t be ignored.

The Risks: Is Hims & Hers Too Good to Be True?

Here’s where I put on my skeptic hat. While Hims & Hers has delivered jaw-dropping returns, it’s not without risks. The telehealth space is crowded, with giants like Amazon eyeing the same market. Plus, the company’s youth—it’s only been public since 2021—means it’s still proving itself.

High returns often come with high risks. Investors should tread carefully in volatile sectors.

– Financial advisor

Some red flags to consider:

1. Market Competition: Larger players could squeeze Hims & Hers’ margins or steal market share.
2. Regulatory Hurdles: The FDA’s oversight of compounded drugs could complicate future offerings.
3. Stock Volatility: Despite recent gains, shares dipped after weaker Q2 guidance, showing the market’s fickle nature.

That said, the company’s ability to adapt—like pivoting from custom drugs to FDA-approved ones—shows resilience. It’s a reminder that while the rewards are tempting, you’ve got to weigh the risks before diving in.

Comparing Hims & Hers to the Market

To put Hims & Hers’ performance in perspective, let’s stack it against the broader market. Over the past year, its stock surged 272%, while the S&P 500 grew a modest 10%. That’s a massive outperformance, but it also highlights the stock’s volatility compared to a diversified index.

Performance Snapshot (May 2024 - May 2025):
  Hims & Hers: +272%
  S&P 500: +10%
  Nasdaq: +15%

Investing in a single stock like Hims & Hers can supercharge your portfolio, but it’s a rollercoaster. In contrast, a broad-based index fund offers steadier, albeit slower, growth. For me, the sweet spot is balancing high-flyers like Hims & Hers with safer bets to smooth out the ride.

Lessons from Hims & Hers’ Success

What can we learn from Hims & Hers’ meteoric rise? For one, it shows the power of investing in disruptive industries. Telehealth is reshaping healthcare, and companies that innovate can reap huge rewards. But it also underscores the importance of timing and diversification.

Here’s my take on what investors can take away:

• Spot Trends Early: Hims & Hers capitalized on the telehealth surge, a trend that’s still gaining steam.
• Stay Informed: The weight-loss drug deal was a market-mover—keeping up with news can help you anticipate shifts.
• Diversify Wisely: A single stock can soar, but spreading your bets reduces the sting of a crash.

Perhaps the most interesting aspect is how Hims & Hers turned a niche idea—telehealth for sensitive issues—into a mainstream success. It’s a reminder that companies solving everyday problems in new ways often have staying power.

Should You Invest in Hims & Hers Now?

So, is Hims & Hers still a buy? That’s the million-dollar question. Its recent earnings beat and strategic partnerships suggest it’s got room to grow, but the stock’s high valuation and competitive pressures warrant caution. Financial planners often stress that past performance doesn’t predict future results, and I agree.

Investment Checklist:
  Research: Understand the company’s market and risks.
  Balance: Mix growth stocks with stable investments.
  Patience: Long-term gains often require weathering dips.

If you’re considering Hims & Hers, think about your risk tolerance. Are you comfortable with a stock that swings wildly? If not, an index fund might be a better fit. For those willing to take the plunge, a small allocation could offer exposure to telehealth’s growth without betting the farm.

The Bigger Picture: Investing for the Future

Hims & Hers’ story is just one chapter in the broader saga of modern investing. The stock market rewards those who can spot opportunities, manage risks, and stay patient. Whether you’re drawn to telehealth or another sector, the principles remain the same: do your homework, diversify, and keep your eyes on the long game.

Investing is about planting seeds today for a harvest tomorrow.

– Wealth management expert

In my experience, the best investments are those that align with your goals and values. Hims & Hers appeals to those who believe in healthcare’s digital future, but it’s not the only path to wealth. By blending growth stocks with stable assets, you can build a portfolio that’s both exciting and resilient.

Final Thoughts: A Worthwhile Bet?

Turning $1,000 into $4,188 since Hims & Hers’ IPO—or $13,466 from its 2022 low—is nothing short of remarkable. It’s a testament to the power of investing in innovative companies at the right time. Yet, as thrilling as those returns are, they come with a caveat: the market is unpredictable, and Hims & Hers is no exception.

For me, the takeaway is clear: take calculated risks, but don’t put all your eggs in one basket. Hims & Hers has shown what’s possible when a company nails its niche, but the journey’s just begun. Will it keep climbing, or will competition clip its wings? Only time will tell, but one thing’s certain—staying informed and strategic is the key to winning in the stock market.

So, what’s your next investment move? Are you eyeing telehealth stocks like Hims & Hers, or sticking to safer bets? Whatever you choose, make sure it’s a decision you can sleep on.