In a surprising turn of events, Doximity, the platform for medical professionals, saw a significant surge in its stock price after exceeding Wall Street’s earnings expectations and announcing a stock repurchase. The San Francisco-based company’s shares climbed more than 14% in extended trading, leaving investors impressed with its performance.
Not only did Doximity surpass the most bullish analysts’ predictions for adjusted earnings per share and revenue in the fiscal fourth quarter, but it also provided a slightly stronger revenue guidance for the current quarter. The company announced that it would repurchase up to $500 million of its Class A stock, further boosting investor confidence in its future prospects.
Meanwhile, Barclays strategist Venu Krishna warned investors about potential stagflation and geopolitical risks that could catch them off guard. Despite the market risks of a potential recession and consumer stress being top of mind for many investors, Krishna highlighted the importance of considering other factors that could impact equity markets unexpectedly.
On a more positive note, stocks are heading for a winning week, with the three major averages set to end the week with gains despite Thursday’s slight retreat. The Nasdaq Composite led the way with a 2.2% increase, followed by the S&P 500 with a 1.4% rise and the Dow with a 0.9% uptick.
In the realm of monetary policy, BlackRock’s chief investment officer for global fixed income, Rick Rieder, suggested that the Federal Reserve may be inclined to cut rates in response to struggles faced by the lower-end consumer in the U.S. Rieder believes there is a possibility of rate cuts as early as July, with a base case scenario of cuts starting in September.
Looking ahead, stock futures were trading near flat shortly after 6 p.m. ET, indicating a cautious approach from investors as they await further developments in the market. Despite the uncertainty, the overall sentiment remains positive, with expectations of continued record highs in equities driven by strong earnings and demand for stocks.
