What Happened?
Shares of healthcare tech company GoodRx (NASDAQ: GDRX) fell 4.9% in the afternoon session after a report on the U.S. job market raised concerns about a potential recession.
The move was not driven by company-specific news but rather a widespread sell-off on Wall Street. Major indexes, including the S&P 500, Dow Jones Industrial Average, and Nasdaq composite, all declined on Friday. Investors are questioning whether the job market has slowed enough to prompt the Federal Reserve to cut interest rates or if the slowdown is so significant that it signals an oncoming recession. This uncertainty led to a negative sentiment across the market, pulling down many stocks, including GoodRx.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoodRx? Access our full analysis report here, it’s free.
What Is The Market Telling Us
GoodRx’s shares are very volatile and have had 29 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 9 days ago when the stock gained 3.1% as investor enthusiasm continued following its recent partnership with Danish pharmaceutical giant Novo Nordisk. The positive momentum is a continuation of a significant rally that began on August 18, when the stock initially surged 37% upon the announcement of the deal. The partnership allows GoodRx to offer popular diabetes and weight-loss drugs Wegovy and Ozempic to self-paying customers at a substantial discount. Investors appear to remain optimistic that this agreement will provide a major customer and marketing boost for the prescription medication discount company, driving sustained interest in the stock.
GoodRx is down 11.3% since the beginning of the year, and at $4.05 per share, it is trading 49.4% below its 52-week high of $7.99 from September 2024. Investors who bought $1,000 worth of GoodRx’s shares at the IPO in September 2020 would now be looking at an investment worth $80.10.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
