Doximity (DOCS) Fell as Guidance Fell Short of Expectations
Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. U.S. equity markets experienced a quarter shaped by optimism around potential monetary easing and caution related to economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October. However, market sentiment cooled later in the quarter due to mixed signals from the Fed regarding future policy. Despite this moderation, the quarter contributed positively to robust annual results, with large caps rising 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter. Value stocks outperformed growth, returning 3.3% versus 1.2% for the quarter. Market factors and sector effects were mixed in the quarter. Against this backdrop, the Fund delivered a return of -0.39% (net) in the quarter, underperforming the Russell 2500 Growth Index’s 0.33% return. As the market heads into 2026, the firm is closely watching the factors that may affect market returns, including monetary policy changes with a new Fed Chair and the sustainability of AI investments due to high valuations among hyperscalers. The firm continues to focus on high-quality businesses with strong competitive advantages, solid balance sheets, and clear sustainable earnings growth. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Meridian Growth Fund highlighted Doximity, Inc. (NYSE:DOCS) as one of its leading relative detractors. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud-based digital platform for medical professionals. Doximity, Inc. (NYSE:DOCS) shares traded between $39.50 and $85.21 over the past 52 weeks. On January 26, 2026, Doximity, Inc. (NYSE:DOCS) stock closed at $40.40 per share. One-month return of Doximity, Inc. (NYSE:DOCS) was -9.38%, and its shares lost 39.23% of their value over the last three months. Doximity, Inc. (NYSE:DOCS) has a market capitalization of $7.61 billion.
Meridian Growth Fund stated the following regarding Doximity, Inc. (NYSE:DOCS) in its fourth quarter 2025 investor letter:
"Doximity, Inc. (NYSE:DOCS) operates a cloud-based digital platform for medical professionals, often described as the “LinkedIn for healthcare.” Its suite of tools supports patient care, telemedicine, clinical news, research, and career development. Reaching approximately 80% of U.S. physicians, the platform offers a compelling advertising channel, particularly for pharmaceutical companies. Despite reporting solid quarterly results, shares declined following guidance that fell short of consensus expectations, reflecting both a moderation in projected revenue growth and ongoing uncertainty around healthcare and pharmaceutical spending."
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