What Happened?
Shares of medical professional network Doximity (NYSE:DOCS) jumped 9.9% in the afternoon session after Raymond James upgraded the stock's rating to Strong Buy, citing a compelling valuation.
The upgrade came despite the investment firm lowering its price target to $65 from $75. Analysts at the firm noted that the stock's valuation seemed "too compelling to ignore" after a significant price drop following the company's fiscal second-quarter results, with shares trading near a 52-week low. Raymond James believed Doximity's long-term growth visibility was improving, pointing to durable market share gains. Other analysts also viewed the recent dip as an attractive opportunity, highlighting potential future growth from AI monetization.
The shares closed the day at $50.42, up 8.6% from previous close.
Is now the time to buy Doximity? Access our full analysis report here.
What Is The Market Telling Us
Doximity’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 3.1% on the news that markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts.
While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%. This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment.
Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.
Doximity is down 5.9% since the beginning of the year, and at $50.40 per share, it is trading 39.4% below its 52-week high of $83.14 from February 2025. Investors who bought $1,000 worth of Doximity’s shares at the IPO in June 2021 would now be looking at an investment worth $950.96.
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