Hims & Hers Massive Stock Drop Explained

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Hims & Hers (HIMS +0.45%) announced the details of a $350 million debt raise today, and it will fund growth plans and add significant risk to the business. Either the debt will be converted to stock, diluting shareholders, or it will require cash to be paid back.

In this video, I explain the mechanics of the debt and capped call transaction and why Hims & Hers has limited time to prove to the market that it's a growth company again.

*Stock prices used were mid-day prices of May 19, 2026. The video was published on May 19, 2026.

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