Here's Why Doximity Dropped 22% in August
Telehealth stock Doximity (NYSE: DOCS) tumbled 21.6% in August, according to data provided by S&P Global Market Intelligence, following weak earnings guidance. Things only got worse as investors pulled out of growth stocks with high valuations. Commentary from the Federal Reserve made it seem likely that interest rates will continue to climb, which reduced investor risk appetite.
Doximity grew 25% last quarter and beat Wall Street's forecasts, but investors couldn't overlook the company cutting its guidance. Its full-year revenue expectations are now $25 million to $30 million lower, which implies a meaningful slowdown in the second half of the year. Doximity's CEO attributed this revision to the company's difficulty upselling in the pharmaceutical industry, which is under macroeconomic pressure.
Doximity is a networking platform for healthcare professionals, and its product suite has expanded to include other tools including patient communications, document transfer, and scheduling. More than 80% of physicians in the U.S. are network members, so the company's successfully developed traction in its target market.
Source Fool.com
