Why GoodRx Stock Was Down 22% in November
Shares of prescription-drug coupon company GoodRx Holdings (NASDAQ: GDRX) fell 22.1% in November, according to data provided by S&P Global Market Intelligence. The stock went down a little in the days following the release of its third-quarter results. But it plummeted when Amazon announced the launch of its pharmacy business.
On Nov. 12, GoodRx released its third-quarter earnings report, its first quarterly report as a public company. Revenue was up 38% year over year to $140 million, resulting in a net loss of $50 million. Both of these numbers were better than analyst expectations. However, the stock likely pulled back because of its rich valuation. While 38% top-line growth is great, it traded for over 40 times sales at the time. This growth rate is arguably too slow to support that much of a premium valuation.
Image source: GoodRx Holdings.
Source Fool.com