__________________________________________________________________________________
Friday, February 7th
“Physician, heal thyself”
-Luke 4:23
__________________________________________________________________________________
__________________________________________________________________________________
Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Up
⚡Crypto: Up
__________________________________________________________________________________
Major Market Events
- Billionaire Bill Ackman reveals large position in Uber stock
- US added 143k jobs in January, a bit less than expected
- Amazon drops as weaker future projections overshadow strong past earnings
🤔 My Thoughts
Markets are down after Amazon’s weak future guidance overshadows its strong earnings report, and people continue to worry about inflation and trade wars.
But there’s one interesting stock soaring today, after surprisingly strong earnings.
The stock is Doximity (NYSE:DOCS) and it positions itself as “The Bloomberg Terminal for Healthcare”
If you know about Bloomberg – that’s the near $30k a year financial software that analysts and traders like us use to get up to the second markets data, talk to other financial pros, and even place trades for large institutions.
A high ticket software product like that in a regulated industry may be frustrating for consumers paying the nosebleed prices… but it’s a beautiful asset-light business from a margin perspective, and Bloomberg has made it’s investors and eponymous founder, former mayor of NYC Michael Bloomberg, outrageously wealthy.
So the thesis of Doximity being able to do for healthcare what Bloomberg did for finance is a promising one. It’s a similarly highly-regulated industry, with growing need for real-time data, and deep-pocketed customers in the form of hospital systems and insurance companies.
Covid-era relaxation of telemedicine rules have been a huge catalyst for Doximity, which provides a mobile app telemedicine platform for doctors and patients.
They report that “Doximity is the largest community of healthcare professionals in the country – with over 80% of U.S. doctors and 50% of all NPs and physician assistants as verified members.”
And the biggest problem with these asset light software companies is a defensible moat – but in the same way that Bloomberg was able to conquer finance because of the high regulatory burden – we think that Doximity may be able to do similar, as the high regulatory burden in healthcare may slow down competitors.
We wish it had been on our radar before, and you’d better believe we’re watching it closely now.
