Let's Celebrate Some Big Investing Wins

These 3 stocks are up 76%, 47%, and 29% in a month.

Author

Travis Hoium
May 09, 2025

I want to cover the earnings of some important stocks in the Asymmetric Portfolio today, but first, let’s celebrate some wins this earnings season.

I have been building large positions in Hims & Hers $HIMS ( ▲ 1.09% ) (#2 position by size), Robinhood $HOOD ( ▲ 1.07% ) (#3 position), and Lyft $LYFT ( ▲ 28.08% ) (#5 position) over the past year, and these stocks are starting to drive the portfolio, which is now beating the market by 15.9% in 2025.

In the last month alone, you can see they’ve all been on an absolute tear.

The reason to highlight these wins today is that the biggest moves have all come after earnings.

Gains haven’t been driven by hype or memes, these are companies hitting on all cylinders, compounding growth, and rising in value as the market reassesses how big their businesses could be long-term.

Let’s dig into all three and why I’m still incredibly bullish.

Hims & Hers

It’s hard to overstate how well Hims & Hers is performing. The company reported 111% growth in the first quarter and is now profitable and generating consistent free cash flow.

Management also expects margins to continue expanding 1-3% per year, so in time, this could be a 10-20% operating margin business.

All numbers are trailing twelve months.

Growth in the quarter was certainly driven by GLP-1s, which were still in shortage in the first quarter, allowing Hims & Hers to compound the product and sell it to subscribers at a low price.

That shortage ended early in Q2, so growth will slow in the final three quarters of the year, but management is still expecting 56% to 63% revenue growth in 2025, despite the loss of the compounded GLP-1 exemption.

A recent partnership with Novo Nordisk to sell Wegovy for $599 per month will include Hims & Hers’ “holistic solutions” like activity and meal plans, which tie into the AI announcements that came this week that I’ll get to below.

What we’re seeing is Hims & Hers become the aggregator of demand that we want it to be.

Put another way, people choose to go to Hims & Hers over going to their doctor. That’s the best sign of success in a digital business.

Once Hims & Hers has aggregated demand, it can pull together more supply and put pressure on those suppliers to provide better prices and more access.

The pressure that Hims & Hers is putting by aggregating millions of patients who need choice, I think, is a huge component, and why some of the most important medicines of the last decade and probably the next decade are now being priced in the hundreds of dollars, not thousands of dollars range. So we want to be a party to everybody in the ecosystem, but we also want to put the consumer first ahead of all.

Andrew Dudum, CEO

Going All-In

On top of the great results released on Monday, last night we learned Hims & Hers is offering up to $1 billion of convertible notes due 2030 with a 0% coupon. Here are the details.

  • $870 million convertible note sale

    • Could increase another $130 million for “overallotment”

  • Matures on May 15, 2030

  • Hims & Hers will have $0 interest payments until maturity

  • At maturity, the debt will be paid back with cash or stock at a conversion rate of $70.67 per share

    • Hims & Hers did enter into a capped call transaction to reduce the impact of dilution: The cap price of the capped call transactions will initially be $89.95 per share, which represents a premium of 75.0% over the last reported sale price of the Company’s Class A common stock of $51.40 per share on May 8, 2025, and is subject to certain adjustments under the terms of the capped call transactions.

What is Hims & Hers going to do with $1 billion?

There’s the relatively boilerplate answer with some AI sprinkled in.

Hims & Hers intends to use proceeds from the offering for general corporate purposes, including accelerating global expansion through both organic growth and strategic acquisitions. Hims & Hers has no definitive agreements for any material acquisitions at this time. The funds will also support the technology team, led by newly appointed CTO Mo Elshenawy, to expand the Company’s data pipeline, develop AI tools, and advance personalized treatments to enhance the consumer healthcare experience. In addition, a portion of the net proceeds will be used to fund the cost of entering into the capped call transactions described below. If the initial purchasers exercise their option to purchase additional notes, a portion of the additional proceeds will also be used to fund the cost of entering into the related capped call transactions.

I think the real answer is that Hims & Hers is going into aggressive expansion mode. It could acquire more testing and production facilities. I wouldn’t be surprised to see more international expansion. There may even be an opportunity to acquire a struggling competitor or two.

If AI is a big part of the future, I also wonder if Hims & Hers needs to build out its own data centers or solutions to be HIPAA compliant (I’m speculating here, I’m not an expert on HIPAA).

No matter what Hims & Hers does, this is a company hitting on all cylinders, and I like the aggressive move to solidify its position as an aggregator.

The stock has been a rocket ship, but it’s still not expensive at 6.3x sales.

Congratulations to all Asymmetric Investors who are up big on Hims & Hers. Here’s to celebrating this week’s win and to more in the future!

Nbc Cheers GIF by Brooklyn Nine-Nine

Gif by brooklynninenine on Giphy

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