Why Doximity (DOCS) Shares Are Sliding Today

Petr Huřťák /
2023/05/17 9:00 am EDT

What Happened:

Shares of healthcare professional network Doximity (NYSE:DOCS) fell 10.8% in the after-market session after the company reported fourth-quarter results that narrowly surpassed analysts' revenue estimates. Gross margin, free cash flow, and EPS also beat. However, revenue and adjusted EBITDA guidance for the next quarter were below the Consensus, though the full-year guidance came in above estimates for both metrics. The results revealed a notable slowdown in revenue growth as the demand for healthcare services continued to normalize, moving away from the pandemic-induced surge.

What is the market telling us:

Doximity's shares are very volatile and over the last year have had 40 moves greater than 5%. But moves this big are very rare even for Doximity and that is indicating to us that this news had a significant impact on the market's perception of the business. The previous big move was 16 days ago, when the company dropped 5.79% on the news that analyst Stan Berenshteyn of Wells Fargo downgraded the stock's rating from Overweight (Buy) to Equal-Weight (Hold) and lowered the price target from $39 to $37. 

Doximity is down 4.14% since the beginning of the year, and at $31.50 per share it is trading 31.8% below its 52-week high of $46.17 from July 2022. Investors who bought $1,000 worth of Doximity's shares at the IPO in June 2021 would now be looking at an investment worth $594.15.

Is now the time to buy Doximity? Access our full analysis of the earnings results here, it's free.