Doximity (DOCS) Surges 10.3% on AI Acquisition and Earnings Beat: Is This the Start of a Bullish Run?

Summary
• Doximity (DOCS) rockets 10.27% intraday to $64.57, breaking through its 52-week high of $85.21
• Acquisition of AI leader Pathway and Q1 earnings beat drive momentum
• Options chain shows aggressive call buying ahead of August 15 expiration

Doximity’s stock is surging on a perfect storm of strategic AI acquisition, robust earnings, and bullish options positioning. The $64.57 intraday high—its strongest since March—reflects investor confidence in its AI-driven clinical tools. With 16.3 million shares traded (1.23% turnover rate), the move signals a shift in market sentiment. The Pathway acquisition and Q1 results are reshaping the narrative for this healthcare tech stock.

Pathway Acquisition and Earnings Surge Ignite DOCS Rally
Doximity’s 10.27% intraday jump stems from two catalysts: the $63 million acquisition of AI clinical reference leader Pathway and Q1 earnings that outperformed estimates. The Pathway deal adds a 96% USMLE-accurate AI model to Doximity’s suite, directly enhancing its value proposition for physicians. Meanwhile, Q1 revenue rose 15% to $145.9 million, with non-GAAP net income margin hitting 49.2%. These results, coupled with the AI acquisition’s strategic fit, have repositioned DOCS as a high-growth play in healthcare tech.

Health Information Services Sector Rally: Veeva Systems (VEEV) Trails DOCS’ Momentum
The Health Information Services sector is mixed, with Doximity outpacing peers like Veeva Systems (VEEV), which rose 0.21% intraday. DOCS’ 10.3% surge reflects its unique AI acquisition-driven narrative, while VEEV’s muted move highlights sector-wide caution. Doximity’s Q1 revenue growth (15%) and AI integration contrast with VEEV’s reliance on SaaS licensing, making DOCS the sector’s standout performer.

Options and ETF Plays: Capitalizing on DOCS’ AI-Driven Breakout
• 200-day MA: $57.20 (below current price)
• RSI: 41.29 (oversold)
• MACD: -0.34 (bearish), but histogram shows short-term divergence
• Bollinger Bands: Price at 64.57 (above upper band of 62.87)

DOCS is trading above its 200-day MA with oversold RSI, suggesting a potential rebound. The options chain shows aggressive call buying, particularly for August 15 expiration. Two top options:

• DOCS20250815C65: Call option with 65 strike, expiring August 15. Key stats: IV 39.45%, leverage ratio 47.86%, delta 0.4769, theta -0.2497, gamma 0.1055, turnover $77,279. This contract offers moderate delta for directional exposure and high gamma for sensitivity to price swings. Projected 5% upside (to $67.79) yields a payoff of $2.79 per contract.
• DOCS20250815C67.5: Call option with 67.5 strike, expiring August 15. Key stats: IV 38.09%, leverage ratio 134.60%, delta 0.2323, theta -0.1463, gamma 0.0838, turnover $28,901. High leverage ratio and moderate IV make this ideal for a continuation of the rally. 5% upside scenario (to $67.79) yields a payoff of $0.29 per contract.

Aggressive bulls should target DOCS20250815C65 for a 5% upside scenario, while DOCS20250815C67.5 offers high leverage for a breakout above $67.50. Both contracts benefit from DOCS’ AI-driven momentum and earnings tailwinds.

Backtest Doximity Stock Performance
The backtest of DOCS' performance after a 10% intraday surge shows mixed results. While the 10-Day win rate is high at 50.98%, the 3-Day win rate is lower at 47.45%, indicating that short-term gains are not consistently maintained. The average return over 10 days is 0.67%, with a maximum return of 3.36% on day 56, suggesting that while there is potential for gains, they are not always realized quickly or consistently.

DOCS’ AI Breakthrough and Earnings Catalysts: Time to Act Before August 15 Expiry
Doximity’s AI acquisition and Q1 results have created a strong foundation for sustained momentum. The 10.3% intraday surge, coupled with oversold RSI and aggressive call buying, suggests a short-term bullish bias. Investors should monitor the $65 psychological level and the 200-day MA ($57.20) as key support. Veeva Systems (VEEV)’s 0.21% rise underscores sector-wide optimism but highlights DOCS’ unique AI-driven narrative. Aggressive traders may consider DOCS20250815C65 for a 5% upside scenario, while a breakdown below $60 could trigger a reevaluation of the rally’s sustainability.