Today Is Doximity’s Worst Stock Market Day. By a Wide Margin.
Are OpenEvidence and other competitors punching their way in?
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Umph… brace for impact. It’s going to be another crashy day in the market.
Today, February 6, 2026 is shaping up to be the worst day in Doximity’s (ticker: DOCS) history, because the overnight price moves are genuinely shocking. At one point overnight, DOCS was down to $20.10, or 40% below yesterday’s close. And yesterday’s close was already down 5.5% from the prior close on Wednesday.
As I’m writing this in the early hours of February 6, DOCS is trading at around $21.00, with a wide bid ask spread, as traders try to make sense of what the f*ck is going on. At that price, DOCS’s valuation is around $3.95B. That is down 58% from its IPO valuation on 6/24/2021 of $9.44B. It is down 79% from its all time high valuation of $18.94B on 9/10/2021. (Boy, those crazy “champagne and cocaine” Covid times. 😉) And it is painfully close to its all time low public valuation of $3.7B, recorded on 9/26/2023.
But first, two upcoming events I was invited to speak at:
If you are in Philadelphia on Tuesday, February 17, don’t be a stranger. Register for Health2Tech, where I’ll be speaking.
I will also be speaking at the Digital Health and AI Innovation Summit (DHAI) 2026 in Boston on June 8-9. Register here.
At both events, I’ll be talking about my newly developed methodology for measuring VC skill in picking “generational companies.” It’s based on a unique dataset of 190 publicly traded health tech companies (such as Doximity) and 700 investment firms that invested in them. It’s a dataset I tediously built over the past several months. And unlike the Forbes annual ranking, I’m using performance metrics, not some subjective “perception of greatness.” 😉
I’ll explain more about this dataset in future posts. I also plan to offer free access to it for my Founding Members.
OK, back to Doximity and market crashes…
DISCLAIMER. I’ve said it before, but it bears repeating. I’m not promoting anything. No sponsors. No advertisers. No bosses. No one pays me to say nice things or mean things. I have zero incentives to hype up or trash any company or its products. I also have no personal investments in any companies mentioned here. I’m my own man. This story is based solely on interviews, my analyses, and public information. Please respect my journalistic integrity.
TL;DR:
1. The Terrible, Horrible, No Good, Very Bad Day for Doximity
2. Don’t Listen to Hemant Taneja. Valuations Do Matter.
3. OpenEvidence is Popping Champagne. Perhaps Prematurely.
4. Conclusion: Can’t We All Just Get Along?
1. The Terrible, Horrible, No Good, Very Bad Day for Doximity
Doximity, or “LinkedIn for doctors,” has been the darling of the industry, and I’ve written about them before. Some doctors like it, others don’t. But the point is: it’s already on doctors’ desktops and iPhones. So one would argue that in convenient patient-to-physician communication and in their AI offerings, they have a pretty solid base, with over 2 million registered users, more than 650 “workflow unique active providers,” and their flagship products, Doximity Dialer and DoxGPT.
The business has been highly profitable and sticky, and it seems the switching costs for all these users would be high to go elsewhere.
But today is, by far, going to be the worst day for Doximity’s stock price (DOCS), and I’m guessing one of the toughest days in the company’s history, period. It sucks. But life goes on.
So what happened?
Doximity beat fiscal Q3 expectations but issued weaker-than-expected Q4 and full-year revenue guidance. Rising marketing costs pressured profits, and its cash reserves declined notably year over year, dimming investor sentiment despite a hefty $500M buyback announcement.
Doximity’s pre-market valuation is at $3.95B, almost at an all-time low. We’re certainly not in Kansas anymore, with the IPO valuation on 6/24/2021 of $9.44B and its highest “Covid hype” valuation on 9/10/2021 of $18.94B.
