Doximity: A Physician’s Whisper and a Broker’s Sigh

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The market, as always, is a curious beast. It purports to value the future, yet often fixates on the immediate tremor. William Blair, a firm not entirely unfamiliar with the vagaries of fortune, has recently pruned its holdings in Doximity – a digital salon for physicians, if you will – to the tune of $20.89 million. A significant sum, certainly, though in the grand scheme of things, merely a cough in the face of a rather congested market. The quarter ended with the Doximity stake diminished by $184.77 million, a figure that speaks not only of sales but also of the market’s capricious nature.

One must ask, is this a harbinger of doom, or simply a broker rearranging the deck chairs? Doximity, representing a modest 0.67% of William Blair’s reported assets, is hardly a portfolio anchor. The true titans – Nvidia, Taiwan Semiconductor, Microsoft, Apple, Amazon – these are the gods upon whose whims fortunes rise and fall. Doximity, bless its digital heart, is merely a favored pet.

  • Top holdings after the filing:
    • Nvidia: $1.98 billion (5.5% of AUM)
    • Taiwan Semiconductor Manufacturing: $1.82 billion (5.1% of AUM)
    • Microsoft: $1.69 billion (4.7% of AUM)
    • Apple: $1.48 billion (4.1% of AUM)
    • Amazon: $1.01 billion (2.8% of AUM)

As of February 6th, 2026, Doximity shares languished at $27.73, a rather pathetic decline from its former glory. It underperformed the S&P 500 by a humiliating 82 percentage points. One imagines the stock weeping quietly in a corner. Yet, even in its distress, there is a peculiar charm. A digital confessional for doctors, a marketplace of ailments and anxieties. A curious enterprise, indeed.

Company Overview

Metric Value
Price (as of market close 2/6/26) $27.73
Market Capitalization $5.09 billion
Revenue (TTM) $637.78 million
Net Income (TTM) $239.40 million

Company Snapshot

  • Operates a cloud-based digital platform offering collaboration, telehealth, and career management tools for medical professionals in the United States.
  • Generates revenue primarily from pharmaceutical manufacturers and healthcare systems.
  • Targets physicians, healthcare providers, and medical organizations as its primary customer base.

Doximity connects U.S. medical professionals through a cloud-based digital platform serving healthcare and pharmaceutical clients. It is, in essence, a digital waiting room, where diagnoses are whispered and prescriptions are exchanged. A modern-day Aesculapius, if you will, though considerably less imposing.

The sale by William Blair, while noteworthy, accounts for only 15% of their Doximity shares. The more intriguing question is not what they’ve sold, but what they will do next. Doximity’s recent earnings report – a paltry 10% growth after a previous 23% – has sent shivers through the market. Management’s guidance of a mere 4% growth for the next quarter is hardly cause for celebration. Yet, I suspect this is a temporary affliction, a confluence of short-term factors rather than a fatal disease.

Pharmaceutical companies, naturally, adore Doximity. 85% of U.S. physicians and two-thirds of physician assistants and nurse practitioners frequent its digital halls. However, a temporary reluctance by the top 20 pharma companies to spend on advertising – a tedious negotiation over “most-favored-nation” agreements – has dampened the company’s immediate prospects. But Doximity board member Tim Cabral reports a surge in bookings in January, a sign that the storm is abating. And the company’s plans to launch and monetize its array of AI applications in 2026 offer a glimmer of hope.

I, for one, remain cautiously optimistic. Doximity, at its current valuation, appears to be a bargain. Perhaps William Blair will recognize this as well. Or perhaps they will continue to chase the latest market fad, oblivious to the subtle beauty of a well-run healthcare platform. The market, after all, is a fickle mistress, and even the most astute investors are often left bewildered and disappointed. The devil, one suspects, is in the details – and in the quarterly earnings reports.

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2026-02-09 22:12