Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on Doximity, Inc. (DOCS) on Denis Gourbnov’s Substack. In this article, we will summarize the bulls’ thesis on DOCS. Doximity, Inc. (DOCS)'s share was trading at $58.06 as of 9th June. DOCS’s trailing and forward P/E were 53.02 and 42.73 respectively according to Yahoo Finance.
g-stockstudio/Shutterstock.com
Doximity, often dubbed the LinkedIn for medical professionals, has quietly become a foundational platform in the digital healthcare ecosystem. With nearly two million medical professionals onboard, including 620,000 physicians as of Q4 2025, the platform integrates career management, collaboration, and telemedicine into a single, intelligent interface.
Doctors can update credentials, receive personalized content, electronically sign documents, consult peers, and even conduct virtual patient visits—all within the app. These features not only enhance productivity but also drive engagement, fueling Doximity’s recurring revenue streams from subscriptions, targeted advertising, job listings, and its telehealth suite.
Financially, the company is in excellent health, posting 20% year-over-year revenue growth and $267 million in free cash flow, up 50% YoY, all while maintaining a debt-free balance sheet. Some investors were spooked by what appeared to be a revenue drop, but this was due to seasonal enterprise purchasing patterns, with hospital and pharma clients typically finalizing budgets and ramping campaigns in Q4.
The recent earnings report in May triggered a 10% stock drop due to conservative guidance (9% YoY growth), yet institutional investors quickly stepped in, as reflected in the stock’s rebound and a long bullish candlestick on the chart. This suggests the selloff was overdone and that smart money still sees value.
Looking ahead, Doximity is poised for further growth with ongoing user expansion, international market potential, and AI-driven enhancements to workflow and marketing tools. Despite recent volatility, the fundamentals remain intact, and the stock appears undervalued, offering a compelling long-term opportunity.
Previously, we covered a bullish thesis on Doximity from Business Invest on Substack in October 2024, which positioned the company as a high-margin, capital-efficient digital platform with strong user adoption among U.S. physicians and resilient subscription-based revenues. With 95% of revenue recurring, a 114% net revenue retention rate, and a 38% operating margin, the company has a robust financial profile and upside from telehealth expansion and potential recovery in hiring solutions. The stock price of DOCS has appreciated by 33%. Gourbnov echoes Doximity’s platform strength but leans into its evolving role as a digital utility for nearly two million professionals.
Doximity, Inc. (DOCS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held DOCS at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of DOCS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
