We see limited prospects here

Article Excerpt

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration: DOXIMITY INC., $57.04, (New York symbol DOCS; TSINetwork Rating: Extra Risk) (doximity.com; Shares o/s: 136.9 million; Market cap: $10.7 billion; No dividend) operates the Doximity Network, an online professional network for doctors. Founded in 2010, the San Francisco-based company’s “LinkedIn for doctors” platform is cloud-based and lets medical professionals collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, and stay up to date with the latest medical news and research. Doximity’s already-high market penetration among medical professionals and advertisers is a plus, but it is also a risk factor for investors. That’s because there are only so many doctors, so many pharmaceutical companies, and so many medical employers. To continue to show growth, the company will need to keep adding new sources of revenue. This could include…