Telehealth darling Hims & Hers Health Inc (NYSE:HIMS) got slapped with a 34% stock crash on Monday. Novo Nordisk A/S (NYSE:NVO) ended their relationship – and it wasn't amicable.

But is the plunge a chance to swipe right on the dip, or should investors ghost the stock altogether?

The high-growth telehealth firm, known for discreetly delivering everything from hair loss meds to mental health prescriptions, found itself at the wrong end of pharma giant Novo Nordisk's legal fury. At the center of the drama? Compounded versions of Wegovy, Novo's $8 billion blockbuster weight-loss drug.

What began as a workaround during supply shortages turned into a regulatory landmine. Now that the FDA says supply is back, compounded GLP-1 alternatives are no longer kosher – and Novo's accusing Hims of ignoring that. Hims says it's all about patient choice. Novo says it's illegal and dangerous.

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HIMS Stock's Been Hit, Valuations Are Lofty

Chart created using Benzinga Pro

Let's break it down:

• Down 34.6% on Monday.
• Down 66% year-to-date.
• Trading below its eight, 20 and 50-day moving averages.
• RSI (relative strength index) at 38.69 – nearing oversold, but not quite screaming reversal yet.

To make matters worse, HIMS is trading at a lofty forward P/E of 69.4, over 2.5x the sector median. Its PEG ratio of 3.9 suggests that even with high growth, the valuation's hard to justify unless earnings explode.

GLP-1 Was The Rocket Fuel… Until It Wasn't

Hims generated roughly $200–225 million in 2024 from its GLP-1 business -- a massive chunk of its $1.48 billion in revenue. But Novo Nordisk just nuked that rocket mid-flight. Analysts are now re-evaluating Hims' forward growth without GLP-1 steroids in the mix.

And with Novo signaling FDA escalation, this isn't just a one-off spat. It's a broader industry warning shot. The Telehealth wild west is running into the FDA's regulatory sheriff.

But Wait -- Is There A Long-Term Case Here?

Not everything is burning. Over 80% of Hims' revenue still comes from non-weight-loss verticals. Acne, anxiety, ED -- these markets aren't going anywhere, and Hims remains one of the most recognizable DTC health brands for millennials and Gen Z.

From a technical lens:

• MACD (moving average convergence/divergence) indicator is positive at 0.48 -- a bullish signal.
• Still above the 200-day moving average ($33.61), indicating long-term trend support hasn't fully broken.

Buy-the-Dip Or Just A Trip?

Hims stock is caught in a regulatory firestorm, and its valuation doesn't offer much margin for error. But the business isn’t going away, and with the GLP-1 bubble deflating across smaller players, Hims may get a chance to re-anchor its narrative.

If you're a long-term bull who believes in the platform beyond weight-loss fads -- this could be your messy, high-risk entry point.

But if you're chasing quick rebounds, beware: the market may want to see actual legal clarity before it forgives and forgets.

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• Hims CEO Slams Novo Nordisk For ‘Anticompetitive Demands’ After Ozempic Maker Abruptly Ends Partnership: ‘We Refuse To Be Strong-Armed’