Investors should consider a long-term position in Hims & Hers Health (HIMS) as it pivots toward the high-growth longevity market through the introduction of peptides and GLP-1s. Despite recent gains, HIMS remains undervalued compared to other disruptors, with a projected valuation gap suggesting a price target between $70 and $80. For a medium-term opportunity, Oscar Health (OSCR) offers significant upside as it leverages AI efficiency and aggressive premium hikes to drive an estimated 61% revenue growth. Monitor OSCR through the next earnings cycle, as a continued low Medical Loss Ratio (MLR) could trigger a formal guidance raise and further price appreciation. Both HIMS and OSCR represent a broader shift toward HealthTech disruption, offering "recession-resistant" recurring revenue models that are currently discounted by traditional finance.

Hims & Hers Health, Inc. (HIMS)

• Business Pivot: The company is aggressively pivoting toward "longevity care" and preventative health, moving beyond its initial focus on mild-to-medium health issues. • New Leadership: HIMS recently appointed a new Chief Medical Officer with specific expertise in preventative care and longevity. • Market Expansion: The speaker believes the "healthy person" market (those seeking to increase life expectancy) represents roughly half of the total addressable market. • Key Growth Catalyst: The introduction of peptides and micro-dosing GLP-1s is viewed as a massive upcoming revenue driver. • Financial Health: * 90%+ recurring revenue model. * 75% gross margins and 14% EBITDA margins. * Rule of 40 score of 49, indicating strong combined growth and profitability. • Acquisitions: Recently closed the Eucalyptus acquisition, which may provide higher-than-expected growth (estimated at 35-40%). • Sentiment: Highly bullish. The speaker notes heavy short interest and argues the stock is "dirt cheap" despite doubling from recent lows.

Takeaways

• Valuation Gap: The speaker suggests that if HIMS were valued similarly to other high-growth disruptors like SoFi or Celsius, the stock price should be between $70 and $80. • Recession Resistance: The subscription-based model for essential health/longevity products makes it a "recession-proof" play in the speaker's view. • Long-term Hold: Unlike other trades, the speaker views HIMS as a long-term story rather than a short-term swing trade.

Oscar Health (OSCR)

• Business Model: A modern health insurance provider selling on the Affordable Care Act (ACA) marketplace. It differentiates itself through high efficiency and heavy use of AI to minimize human labor costs. • Recent Performance: The stock recently saw a 15% jump following a Wells Fargo upgrade. • Pricing Power: Oscar (and the broader industry) raised premiums significantly—Oscar’s average increase is estimated at 30% to 40%. • Revenue Growth: Due to premium hikes and expansion, revenue is predicted to grow at 61%. • Medical Loss Ratio (MLR): The speaker highlights a low MLR (around 73-74%), which suggests high profitability. If this trend continues through Q2, a guidance raise is expected.

Takeaways

• Medium-term Opportunity: The speaker views OSCR as a "swing trade" or medium-term play rather than a forever-hold, primarily due to a personal dislike of the insurance business model. • Efficiency Play: The core thesis is that OSCR is a much more efficient newcomer compared to 100-year-old "TradHealth" incumbents. • Valuation: Despite a 110% gain from trough to peak, the speaker argues it remains "dirt cheap" with a valuation metric of 0.055 in their internal tracking (cheaper than HIMS on a relative basis).

Investment Themes & Sectors

Traditional Health (TradHealth) Disruption

• The transcript emphasizes a shift away from traditional, inefficient health insurance and reactive medicine toward AI-driven efficiency and proactive longevity. • Key Sector: HealthTech and "Marketplace" Insurance.

Longevity and Preventative Medicine

• There is a growing investment theme around "living longer" rather than just "treating sickness." • This includes the use of peptides and GLP-1s for healthy individuals, not just those with chronic conditions.

Short Squeezes and Market Sentiment

• Both HIMS and OSCR are described as being "discounted" or "ignored" by Wall Street (TradFi), with HIMS specifically being targeted by heavy short selling, which can lead to volatile upward moves when positive news breaks.

Other Assets Mentioned

• MicroStrategy (MSTR): Mentioned as a significant holding in the speaker's portfolio that impacts their overall performance. • UnitedHealth Group (UNH): Cited as a legacy incumbent used for industry comparison regarding the 2025 medical loss ratio issues. • Celsius (CELH) & SoFi (SOFI): Used as valuation benchmarks for what high-growth disruptor stocks "should" be trading at.