---
title: "Hims & Hers Massive Stock Drop Explained"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286954469.md"
description: "Hims & Hers is raising $350 million through a convertible debt offering, which may limit shareholder dilution but also increases business risk. The company must demonstrate growth potential to the market, as the debt could either convert to stock or require cash repayment. This move aims to fund long-term growth plans."
datetime: "2026-05-19T18:40:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286954469.md)
  - [en](https://longbridge.com/en/news/286954469.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286954469.md)
---

# Hims & Hers Massive Stock Drop Explained

## Key Points

-   Hims & Hers is raising at least $350 million in a convertible debt offering.
-   The details of the deal include a capped call, which could limit dilution.
-   This provides capital for long-term growth but also increases risk.
-   These 10 stocks could mint the next wave of millionaires ›

**Hims &** **Hers** (NYSE: HIMS) 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.

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

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_Travis Hoium has positions in Hims & Hers Health. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool has a disclosure policy._ _Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through_ _their link_ _they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool._

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)
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- [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md)
- [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md)
- [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md)

## Related News & Research

- [Is Hims and Hers Health stock a buy after its latest dip?](https://longbridge.com/en/news/286450228.md)
- [$1000 Invested In Hims & Hers Health 5 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/286630207.md)
- [Hims prices $350M 0.00% convertible notes due 2032, upsized from $300M](https://longbridge.com/en/news/286911997.md)
- [Why Hims & Hers Health stock just crashed](https://longbridge.com/en/news/286133577.md)
- [BUZZ-Hims & Hers Health shares stabilize after boosted $350 mln convertible deal](https://longbridge.com/en/news/286896810.md)