Shares of Recursion Pharmaceuticals (RXRX +0.15%) were sinking 8.2% lower as of 10:57 a.m. ET on Monday. The clinical-stage biotech company, which is a pioneer in using artificial intelligence (AI) in drug discovery, didn't announce any news that would cause its stock to fall, though.
Part of the reason Recursion's shares tumbled is that the overall stock market has retreated as investors worried that the Trump administration's tariffs could cause an economic recession. However, the stock was also likely negatively impacted by CNBC Mad Money host Jim Cramer's comments on Friday. He expressed reservations about buying shares of Recursion Pharmaceuticals in light of the stock's major decline in recent weeks.
NASDAQ: RXRX
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What's going on with Recursion?
Cramer stated on Mad Money at the end of last week's trading that Recursion's stock performance has "been disastrous" since the company's management appeared on his program in May 2024. He added, "We're going to have to hold off. I gotta meet them face to face and see what's going on."
So what is going on with Recursion? The company completed its acquisition of Exscientia in November 2024. In December 2024, Recursion reported encouraging interim data from a phase 1 study of REC-617 in treating solid tumors. In February 2025, the drugmaker announced positive 12-month results from a phase 2 study evaluating REC-994 in treating cerebral cavernous malformations (CCM).
However, investors were arguably irrationally exuberant following the news in February 2024 that Nvidia held on to its stake in Recursion while exiting several other positions in AI companies.
Is Recursion Pharmaceuticals stock a buy on the sell-off?
Risk-averse investors will probably be better off staying on the sidelines with Recursion Pharmaceuticals. However, the recent sell-off could be a good buying opportunity for aggressive investors willing to wait on Recursion's pipeline programs to hopefully fulfill their potential.
