What Happened?
Shares of medical professional network Doximity (NYSE: DOCS) fell 25.9% in the afternoon session after the company reported underwhelming first quarter results: its revenue guidance for next year revealed a significant slowdown in demand and its full-year revenue guidance fell short of Wall Street's estimates.
Management noted that Pharma marketing budgets were being committed in shorter-duration tranches and the new AI search revenue won't meaningfully ramp until the second half of the fiscal year. On the other hand, Doximity blew past analysts' billings expectations and its EBITDA outperformed Wall Street's estimates. Still, this was a weaker quarter.
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What Is The Market Telling Us
Doximity’s shares are very volatile and have had 21 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 29 days ago when the stock gained 7.1% on the news that markets benefited from a "risk-on" sentiment fueled by potential peace negotiations between the U.S. and Iran.
As geopolitical tensions eased, investors returned to growth-heavy favorites like Microsoft and ServiceNow, which offer high-margin subscription revenue and clearer paths for integrating generative AI into enterprise workflows.
Doximity is down 59.6% since the beginning of the year, and at $17.48 per share, it is trading 76.7% below its 52-week high of $75.12 from September 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 $329.89.
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