Investing.com -- Shares of Hims & Hers Health, Inc. (HIMS) dropped over 15% Thursday following Amazon’s announcement of new telehealth treatment options aimed at providing low-cost care for a range of health and beauty concerns, which could pose significant competition for Hims & Hers’ subscription-based health services.
Amazon (NASDAQ:AMZN) said its new telehealth services, available to Prime members, cover men’s hair loss, eyelash growth, anti-aging skincare, ED, and motion sickness, all with upfront pricing.
Amazon touts the service as offering convenience and affordability, with rates as low as $16 per month for hair loss treatments.
Bergen Penhart, general manager for Amazon One Medical (TASE:PMCN) Pay-per-visit, highlighted Amazon’s commitment to accessible, affordable health care, saying the new service allows Prime members “to get expert clinical advice and prescribed treatments for common health, beauty, and lifestyle needs, all from the comfort of home.”
Amazon’s telehealth visits are available 24/7, allowing users to consult with clinicians for $29 through messaging and $49 via video. Once diagnosed, Prime members can have prescriptions filled through Amazon Pharmacy, which offers free delivery directly to their door, often the same day in select cities.
In response to the announcement, the stock of Hims & Hers—a company specializing in telehealth and subscription-based wellness products—plunged as investors weighed the impact of Amazon’s pricing and distribution capabilities on Hims & Hers’ market share.
As Amazon aggressively moves into this space, analysts anticipate potential market disruption for existing telehealth services.