Why Did bioAffinity Technologies, Inc. (BIAF) Plunge 30.34%?

On April 3, 2025, bioAffinity Technologies, Inc. (BIAF) experienced a significant drop of 30.34% in pre-market trading, reflecting a dramatic 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 been a mix of positive and negative indicators. For the full year 2024, bioAffinity reported a 270% increase in revenue to US$9.36 million, but also a widened net loss of US$9.04 million, a 14% increase from the previous year. Despite missing revenue estimates by 2.2%, the company exceeded earnings per share (EPS) expectations by 8.5%.

Analysts have expressed concerns about the company's financial health, noting a negative net margin of 91.22% and a negative return on equity of 205.09%. These financial metrics, combined with the recent downgrade by Maxim Group from Buy to Hold, have likely contributed to the negative market sentiment. The company's shares had previously surged 278% from a week ago, indicating high volatility and investor speculation.

Looking ahead, the company faces challenges as revenue is expected to decline by 14% annually over the next two years, while the broader biotech industry in the US is projected to grow by 19%. This disparity in growth expectations may further impact investor confidence and stock performance.