Advertisement
U.S. markets closed
  • S&P 500

    5,123.41
    -75.65 (-1.46%)
     
  • Dow 30

    37,983.24
    -475.84 (-1.24%)
     
  • Nasdaq

    16,175.09
    -267.10 (-1.62%)
     
  • Russell 2000

    2,003.17
    -39.43 (-1.93%)
     
  • Crude Oil

    85.45
    +0.43 (+0.51%)
     
  • Gold

    2,360.20
    -12.50 (-0.53%)
     
  • Silver

    27.97
    -0.28 (-0.99%)
     
  • EUR/USD

    1.0646
    -0.0085 (-0.79%)
     
  • 10-Yr Bond

    4.4990
    -0.0770 (-1.68%)
     
  • GBP/USD

    1.2451
    -0.0104 (-0.83%)
     
  • USD/JPY

    153.2400
    +0.0370 (+0.02%)
     
  • Bitcoin USD

    65,026.11
    -1,821.00 (-2.72%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,995.58
    +71.78 (+0.91%)
     
  • Nikkei 225

    39,523.55
    +80.92 (+0.21%)
     

Why Recursion Pharmaceuticals Stock Dived by Nearly 17% Today

Recursion Pharmaceuticals (NASDAQ: RXRX) couldn't get over the hump of Hump Day. Following the release of the next-generation biotech's latest set of quarterly and annual results, investors traded out of its stock, to the point where the shares lost almost 17% of their value. That was a far steeper decline than the 0.2% slump of the bellwether S&P 500 index.

A big revenue miss for the fourth quarter

Recursion had been a fairly popular biotech stock, due to its significant use of artificial intelligence (AI) functions to discover new drugs. However, those results put quite a damper on sentiment. That's because the company earned only $10.9 million in revenue, while the consensus analyst estimate was a far higher $19.9 million.

On a slightly brighter note, Recursion beat on the bottom line, with a net loss just shy of $93 million, or $0.42 per share. Those prognosticators were collectively modeling a $0.46 per-share deficit.

The company also updated investors on its pipeline, which includes medications that target a range of afflictions. Although none have yet reached late-stage clinical testing, Recursion said that it anticipates being able to share data from Phase 2 trials for a pair of these drugs.

A future where tech and biotech meet

Recursion didn't provide any guidance for future periods, which isn't unusual for a clinical-stage biotech with low levels of revenue. It did quote its co-founder and CEO Chris Gibson as saying that in 2023, it "continued to demonstrate how combining technology, biology, chemistry, and patient data can industrialize drug discovery, and we look forward to the milestones ahead of us in 2024."

Should you invest $1,000 in Recursion Pharmaceuticals right now?

Before you buy stock in Recursion Pharmaceuticals, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 26, 2024

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Recursion Pharmaceuticals Stock Dived by Nearly 17% Today was originally published by The Motley Fool

Advertisement