Hims has long-term potential but recent financials are weak; keeping it on watch list rather than buying now.

But, there's is a stock that I've been interested in buying, and it's right on my watch list, and it is Hims. Hims stock, okay? This is one I've been interested in potentially starting a position, and it's 30, you know, just over $30 right now, right?

And I got it on my stocks to buy watch list, right?

Well, we have a little issue here with Hims, okay? They just came out with their latest results. Now, revenue looks good, 38% growth. Awesome. There's a lot of issues with this report, okay?

Now, some of these issues have to do with restructuring, uh GLPs, moving away from compounds. Like, there's there's a whole host of reasons, but the moral of the story is here, this was a very ugly report, right?

Other than the great number was revenue, 38%, but cost of revenue rose 112%, which the gross profit then was only up 16 percentage points, so it grew at, you know, way less of a fast number than obviously revenue grew at, right? So, gross margin went down to 64% from 76%.

Marketing was actually a bright spot for the company. That was only up 20 20% while revenue was up 38%. The issue is more here. Operations and support grew 44%. Keep in mind, gross profit was only up 16%, and operations and support was up 44%, which is still a faster number than even revenue was up.

Technology and development up 45%, so that's up a mile and a half versus gross profit, and much more than revenue.

Uh we also had G&A, general administrative was up 146% year over year. So, total operating expenses up 48%. That's an ugly number, especially when you account for gross profit only being up 16%.

You can't have your operating expenses grow 48% when your when your gross profit's up 16%. And your revenue, you know, we're talking about 1,000 basis points of difference there, 10-fold percentage points versus revenue.

Revenue 38% versus total operating expenses 48%. It's ugly.

So, they went from a situation where they, you know, had income from operations of tens of millions of dollars to they had almost a $100 million loss from operations in the quarter.

Ugly. And then they lost 37 cents a share versus 19 cents a gain, right? And obviously, you know, they had their excuses for this around restructuring and all the other things we went through, but the moral of the story is it was enough F plus grade.

It was very ugly income statement for Hims, right?

And so, my thing with Hims is yes, it's an exciting company. It has a big long-term potential, right? They look the most prime for telehealth in general, right? But I'm interested in potentially starting a position eventually here, right?

But the issue I have and the whole the whole company sells for right around $7 billion. They have a lot of cash on the balance sheet as well. Last time I checked, I think it was over $600 million of cash, right?

So, I might eventually start buying this, but I have an issue, okay?

And so, if I look out there, I'm like I could buy Hims or I could just buy more Netflix stock. I could buy Hims or I could another very easy money stock, American Express.

I cannot confidently say that Hims has more upside potential over the next 5 years than Celsius.

Hims might, but I I can't say I'm more confident in Hims than I'm confident Celsius. And I know the energy drink industry very well from my days of being invested in Monster back when it was Hansen's Natural Beverage.

And, you know, obviously the industry Hims is in is very relatively new, right? When it comes to the way they do business. So for now I'm keeping Hims on my possible buys watch list.

I might eventually start a position here, but it's tough, man.