Shares of this digital medical platform jumped more than 100% overnight. Here’s why
The company is seeing huge profitability potential and a larger addressable market as a result of AI search.
Doximity, a digital medical platform, experienced a remarkable surge in its stock price following CEO Jeffrey Tangney's comments on the company's new AI search tool during the first-quarter fiscal 2027 earnings call. Tangney stated that the AI search product generates more than 10 times the revenue it costs to operate, and as models become more efficient, unit economics are expected to improve over time.
This positive outlook led to the company's shares jumping more than 100% overnight, with a 55% increase in premarket trading before settling down. Analysts, however, believe that these spectacular returns have not yet been factored into Doximity's already solid financials. The company reported strong first-quarter revenues of $156.6 million and adjusted EBITDA of $74.8 million, both surpassing consensus estimates.
Despite this, Doximity raised its full-year revenue guidance range by 5%, but analysts think that AI search revenue is not a significant contributor to the boosted forecast.
Brief written by urgent.news from CNBC's own syndicated text. Machine-written — read the original for the full account.
We haven't written up this one. CNBC has the full story — the link below goes straight to it.
