Ever since Doximity (NYSE: DOCS) went public in June 2021, the stock has been commanding a significant premium. Unsurprisingly, as investors have become more focused on valuations and earnings multiples, shares of Doximity have been falling in value and are down 38% year to date.

Investors may be wondering if this has created a buying opportunity for a business that still sees plenty of growth in its future. Is now the time to buy shares of Doximity, or should investors wait for more of a drop in price before adding it to their portfolios?

One of the reasons investors may have been inclined to ignore the high price of Doximity's stock in the past was because of the company's strong, underlying fundamentals. Doximity's business centers around being a social network for doctors, not unlike Microsoft's LinkedIn, which is open to the general public. By improving workflow, making it easy to stay on top of news, and connecting with peers and patients, there are many reasons doctors might find Doximity useful. And according to the company, 80% of U.S. physicians use it.

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Source Fool.com