I believe the inclusion of the compounded GLP-1 drug as part of their product offerings will driving strong sales and membership numbers in the next few months.
1) Their compounded GLP-1 is significantly cheaper
2) Their platform makes it easier and more accessible to purchase
3) It is lifestyle related so monthly recurring purchases is encouraged
4) HIMS is essentially a DTC business where capturing market share is crucial at this stage. In 2021 it was reported that they spend 48% of their revenue on marketing.
As long as they can secure recurring purchases with a solid Average Order Value (AOV), they can gradually reduce and optimise expenses for new acquisitions once they have captured a significant market share. Not to mention the cross sell potential and the lower advertising costs for existing customers
This is part of a Qullamaggie Breakout and Episodic Pivot study I am currently conducting
Source
1) Their compounded GLP-1 is significantly cheaper
2) Their platform makes it easier and more accessible to purchase
3) It is lifestyle related so monthly recurring purchases is encouraged
4) HIMS is essentially a DTC business where capturing market share is crucial at this stage. In 2021 it was reported that they spend 48% of their revenue on marketing.
As long as they can secure recurring purchases with a solid Average Order Value (AOV), they can gradually reduce and optimise expenses for new acquisitions once they have captured a significant market share. Not to mention the cross sell potential and the lower advertising costs for existing customers
This is part of a Qullamaggie Breakout and Episodic Pivot study I am currently conducting
Source
Note
Initially, I focused on the tightening candles. However, the price momentum, reflected in the gap up, combined with my conviction based on the fundamental reasons for the stock's rise. Consequently, I entered the trade with confidence. If the price pulls back due to broad market movements, I'll be ready to re-enter another probe bet once momentum returns.Trade closed manually
I closed this trade at breakeven because the price didn't follow the expected trend and started to consolidate. I will re-enter when the momentum aligns with my hypothesis and conviction.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.