This Is the Biggest Problem With Doximity's Stock
Doximity (NYSE: DOCS) operates a networking platform for doctors that claims to have 80% of U.S. physicians on it. It's an impressive statistic, but that hasn't been enough of a reason for investors continue buying up the stock this year. While other growth stocks have been thriving due to artificial intelligence (AI), there's not the same level of excitement around Doximity -- even though the company has launched its own chatbot, DocsGPT.
But Doximity's problems aren't due to AI. The biggest issue with the stock is simply its valuation. Let's take a look at the numbers.
Today, investors are paying a multiple of more than 40 times earnings to own a piece of Doximity's business. And that's a reduced valuation as shares of the company are down more than 30% this year. However, this has never been a cheap stock to own since it went public in 2021.
Source Fool.com
