Recently, the market has engaged in extensive discussions about $Hims & Hers Health(HIMS.US). The primary reasons are the uncertainties surrounding its weight-loss drug business, regulatory environment, and partnership with pharmaceutical giants, leading to significant stock price volatility. Some institutions hold a pessimistic outlook on HIMS and have adopted large-scale short-selling strategies, citing reasons such as potential zero future revenue growth and risks of financial and operational pressure from FDA and Novo Nordisk-related lawsuits.

However, the plot took a clear turn last Friday. Novo Nordisk announced it will sell its weight-loss drug products on the Hims platform, and both parties have ended the dispute that escalated to legal action last month. This move establishes a legitimate global distribution network, keeps Hims' balance sheet healthy, and forms a strategic partnership with a major pharmaceutical company. Against this backdrop, there remains a significant amount of uncovered short interest in the market.

Following the announcement, Hims' stock price rose nearly 40% in after-hours trading. When the market opens next Monday, the stock price is expected to continue its upward trend. If short sellers begin large-scale stop-loss covering, a rapid price surge could occur in the short term. Of course, another possibility exists: as the partnership with Novo Nordisk progresses, Hims' fundamentals gradually improve, and the short squeeze will proceed at a relatively slower pace, with the stock price rising steadily.

When the market opens next week, I will do my part to turn the shorts into fuel sooner. However, for stability, it's still advisable to wait 30 minutes to an hour after the opening, observe the market turnover rate and trading volume to gauge the strength of the short covering before deciding whether to enter. In the current geopolitical environment, the impact of the broader market cannot be ruled out.