Why Did bioAffinity Technologies Drop 24.27%?

On April 3, 2025, bioAffinity Technologies, Inc. (BIAF) experienced a significant drop of 24.27% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

bioAffinity Technologies, Inc. is a company focused on developing non-invasive diagnostics to detect early-stage lung cancer and other lung diseases. The company's recent financial performance has shown a mixed picture. For the full year 2024, bioAffinity reported a revenue of US$9.36 million, marking a substantial increase of 270% from the previous year. However, the company also reported a net loss of US$9.04 million, which widened by 14% compared to the previous year. Despite the revenue growth, the company's earnings per share (EPS) missed analyst estimates by 2.2%, while the EPS exceeded expectations by 8.5%.

Looking ahead, the company's revenue is expected to decline by 14% per annum over the next two years, while the biotech industry in the US is projected to grow by 19%. This discrepancy in growth expectations could be a factor contributing to the recent drop in stock price. Additionally, the company's negative net margin of 91.22% and a negative return on equity of 205.09% indicate significant financial challenges that investors are taking into consideration.

On April 1, 2025, Maxim Group downgraded their outlook for bioAffinity Technologies from Buy to Hold, which may have influenced the recent decline in stock price. The downgrade suggests a more cautious stance on the company's future prospects, potentially leading to a sell-off by investors who had previously held a more optimistic view.