What happened
Shares of Doximity (DOCS -0.34%) closed on Thursday at $34.78, down 9.9% for the week so far, according to data from S&P Global Intelligence. The digital platform for healthcare professionals fell as much as 11.6% for the week but bounced back a bit on Thursday. The stock closed last week at $31.65. It opened this week at $31.18, then fell as low as $30.70 before rising the rest of the week. So far this year, Doximity's shares are down 30%.
So what
It was a relatively small drop but a surprising one, considering the company didn't release any financial news this week. It's more likely the market doldrums toward tech companies this week in light of COVID-19 anti-lockdown protests in China may have affected the stock's price. Tech companies that operate as social networks have reported declining earnings from advertising, which is Doximity's primary source of income.
In the second quarter, the company reported revenue of $102.2 million, up 29% year over year, but net income was $26.3 million, down 34.6% from the same period last year. The company's margin dropped to 26% compared to 45% in the second quarter of 2021.
Now what
Investors were looking at talk of layoffs at Alphabet, Meta, and Twitter to read the tea leaves on where things might be headed at Doximity. Those companies are much different than Doximity, which is focused on a specific healthcare demographic, of course, and it's likely the market realized that to blunt the pullback. Doximity's margin shrinkage is a bigger concern, and the company's third-quarter report should give a clearer picture of its direction. For now, though, Doximity is profitable and still seems to be in growth mode.
