Absci (ABSI) Shares Plunge 3.24% as Profitability Skepticism Dampens Investor Confidence

Absci (ABSI) shares plunged 3.24% on Thursday, marking a two-day decline of 6.27% and hitting a level not seen since April 2025. The stock’s intraday drop reached 4.05%, signaling heightened investor caution ahead of potential near-term catalysts. Despite a “Buy” consensus from analysts and improving short interest trends, the selloff underscores lingering skepticism about the biotech firm’s path to profitability.

Analysts remain cautiously optimistic, citing Absci’s AI-driven drug discovery platform and preclinical pipeline targeting inflammatory bowel disease and immuno-oncology. However, the company’s lack of clinical-stage assets and reliance on equity financing have dampened near-term confidence. Institutional ownership at 52% and insider purchases of $152,000 in recent months suggest alignment between management and long-term investors, yet the trailing P/E ratio of -2.63 highlights ongoing financial pressures.

Short interest in ABSI has fallen 2.09% month-over-month, though 24% of the float remains sold short, reflecting mixed sentiment. While declining shorts may indicate reduced bearish bets, the high short interest ratio of 6.8 days to cover implies potential volatility if the stock reverses course. Meanwhile, news sentiment remains neutral, with limited media coverage and a 6% drop in retail investor searches over 30 days, suggesting waning retail engagement despite institutional curiosity.

Strategic partnerships with PrecisionLife and Memorial Sloan Kettering provide access to advanced technologies, but Absci’s absence of revenue-generating products leaves it vulnerable to funding risks. With $117.46 million in cash and a projected EPS improvement to -$0.69 next year, the company must navigate a competitive AI-driven biotech landscape. Regulatory hurdles and the absence of clinical trial milestones further complicate its path to commercialization, keeping the stock in a holding pattern until key data emerges.