Three years after its debut, Hims & Hers (NYSE:HIMS) will start trading on the New York Stock Exchange today. This marks the end of blank-check company Oaktree Acquisition (NYSE:OAC), and will launch another telehealth play into the public realm. So with the Hims & Hers SPAC merger complete, what do you need to know about HIMS stock?
To start, investors should know that Oaktree Acquisition is a special purpose acquisition company that is now through with the process of bringing Hims & Hers public. As a result, today is the first day HIMS stock will actually trade on its own. Although there is no shortage of SPAC offerings, Hims & Hers stands out as a telehealth business. That is why its independent debut today is worthy of investor attention.
With that in mind, here is what you need to know about the Hims & Hers SPAC merger and HIMS stock:
- Oaktree Acquisition initially came public in July 2019.
- At the time, the company raised $175 million by offering 17.5 million units at $10.
- Then, the blank-check company announced it would bring Hims & Hers public.
- Hims & Hers launched in 2017 under the leadership of Andrew Dudum.
- Dudum planned on a traditional IPO for Hims & Hers, but then pivoted to a SPAC deal.
- Its initial focus was under the brand Hims, and the company launched telehealth services specifically for hair loss and erectile dysfunction.
- Since then it has expanded to include the brand Hers.
- The company also has a variety of broad telehealth offerings, and even sells Covid-19 test kits.
- Lastly, it offers mail-order wellness products.
- As it starts trading, it should have a value of $1.6 billion.
- In the past year, Hims & Hers reported revenue of $138 million.
- This represents a compound annual growth rate of 128% over the past three years.
The Hims & Hers SPAC Merger and HIMS Stock
From its initial male wellness focus to its broader telehealth business, Hims & Hers has grown and shifted quite a bit. As it stands, the company is positioning itself as a competitor to industry leader Teladoc (NYSE:TDOC). Over the last three years, as Katie Jennings wrote for Forbes, the company performed 3 million telehealth consultations. That compares to 2.6 million visits for Teladoc in 2020 alone — although it took several years for Teladoc to ramp to that level.
With its Hims and Hers brands, an online pharmacy, electronic medical records solutions and specialized telehealth services like behavioral health and dermatology, Dudum and HIMS stock fans are betting the company can stand out. In fact, prior to the Hims & Hers SPAC merger closing, the telehealth business drew a bit of celebrity attention. Alex Rodriguez and Jennifer Lopez are both venture-round backers of Oaktree Acquisition. Some estimates put their stake at $79 million.
So how should investors view HIMS stock? As with any brand-new SPAC offerings, be sure to do your own research. However, especially as Covid-19 accelerates broader telehealth interest, Hims & Hers stands out.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.