Shares of Doximity (NYSE: DOCS) soared in the months following their June 2021 initial public offering. But the stock's performance hasn't been as bright since, losing 38% since its launch. The reason: Some investors might have worried the stock had gained too much too fast.
Another concern is whether the company's revenue source can keep delivering -- or whether it will reach a peak and then stagnate. And more recently, investors have worried that today's high interest rates could weigh on demand for ads on Doximity, and therefore hurt revenue.
Does this mean we should avoid the stock? Or is Doximity a buy after reaching a very reasonable valuation? Let's find out.
Source Fool.com