Doximity Stock Just Got Crushed. Is This a Rare Chance to Buy a High-Quality Growth Company on Sale?

The large contented connected the market's caput is whether the institution tin past the menace that AI's emergence whitethorn airs to Doximity's operations. For instance, the company's Scribe product, which transcribes and generates notes during doc visits, is simply a somewhat "common" diagnostic successful today's AI-powered world.

Similarly, its Ask solution is simply a ample connection exemplary tailored for doctors -- but whitethorn not connection capable differentiation from the starring AI companies today.

However, focusing solely connected these bundle risks undermines Doximity's profoundly entrenched ecosystem.

First, Doximity is utilized by much than 85% of U.S. physicians -- a monolithic network. Second -- and acknowledgment to this entree to doctors -- the institution counts each of the apical 20 pharmaceutical manufacturers arsenic advertizing customers. Third, Doximity besides counts the apical 20 hospitals and healthcare systems arsenic customers, whether for advertizing oregon for its workflow solutions (the perchance disruptive bundle mentioned earlier).

Simply put, I don't deliberation AI tin replicate Doximity's beardown ecosystem. In fact, I'd reason that the revolutionary exertion could really marque the company's level adjacent stronger arsenic it continues to incorporated AI into galore of its solutions. In the 4th quarter, astir fractional of Doximity's 800,000 progressive prescribers utilizing its workflow solutions utilized an AI tool. Similarly, 7 of the apical 20 hospitals purchased the company's caller objective AI suite.

That said, margins dipped successful Q4 arsenic Doximity's costs roseate amid its "AI concern year," truthful this is thing investors request to absorption connected successful upcoming quarters.

Ultimately, I deliberation the AI fears are overdone -- particularly fixed that HIPAA compliance, strict regulations, and sizeable ineligible ramifications marque it incredibly hard for a large tech institution to conscionable "vibe code" a amended healthcare AI solution. Trading astatine conscionable 15 times escaped currency travel (accounting for stock-based compensation and Doximity's $700 cardinal currency balance), Doximity remains a apical bargain close present for me, arsenic the cyclical pharma advertizing manufacture should yet rebound.