What Happened?
Shares of healthcare professional network Doximity (NYSE: DOCS) jumped 11.6% in the afternoon session after the company reported strong second-quarter 2025 results that surpassed Wall Street's expectations and raised its full-year guidance. The digital platform for U.S. medical professionals reported revenue of $145.9 million, an increase of 15.2% year over year, and adjusted earnings per share (EPS) of $0.36. These results comfortably beat analyst estimates, which called for $139.6 million in revenue and an adjusted EPS of $0.31. Furthermore, Doximity provided strong guidance for the next quarter, with its revenue forecast of $157.5 million coming in 5% above expectations. The company also raised its full-year revenue guidance to a midpoint of $632 million. The strong performance and optimistic outlook signaled healthy demand and operational efficiency, boosting investor confidence.
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What Is The Market Telling Us
Doximity’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Doximity and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 4.2% on the news that the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Doximity is up 21.5% since the beginning of the year, but at $65.08 per share, it is still trading 21.7% 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 $1,228.
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