Raul Shah is an early investor in Hims and the head of a private equity fund. He just tweeted something and then deleted it immediately. The translation is as follows:

It looks like we're entering that familiar and hated rhythm: "A sharp surge first, followed by a 40%-50% stock price retracement over the next few weeks."

This situation happens almost every time after the stock price rises, likely because short sellers concentrate their efforts to push the price back down. What's worse, Hims, as a growth company, doesn't have real cash to buy back shares; even if it did, it wouldn't help, because the company itself is massively diluting shareholder equity. The last line of defense against short sellers (i.e., the company itself) is completely absent.

I've never seen anything like this in my life. The market is filled with a mix: unlimited hatred + almost 'free' borrowing costs + unlimited shorting of this stock.

Short sellers have been shorting Hims for six consecutive months, which is something else.$Hims & Hers Health(HIMS.US) $Defiance Daily Target 2X Long HIMS ETF(HIMZ.US)