Why Doximity Stock Fell More Than 11% This Week
Shares of healthcare software company Doximity (NYSE: DOCS) took an 11.5% tumble last week. It capped off an atrocious first half of 2022, the worst first half of a year in more than half a century. Through July 1, the S&P 500 was down 19.7%, the Nasdaq Composite was down 25.9%, and Doximtiy took a 26.8% hit.
There was no specific news from Doximity to cause the drop last week. However, growth stocks in general continue to struggle after the U.S. Federal Reserve raised its short-term interest rate 0.75% in June. As a reminder, the present value of risk assets like stocks fall if interest rates rise.
Inflation is still running hot right now, and there's expectation the Fed will raise interest rates again when it meets on July 26 and 27. Thus, high-growth stocks like Doximity that have high variability in profit generation have remained far more volatile than the stock market overall.
Source Fool.com
