Why Did Neuronetics Inc. (STIM) Plunge 11.78% Despite 84% Revenue Surge?

Neuronetics Inc. (STIM) experienced a significant drop of 11.78% in pre-market trading on May 6, 2025, raising concerns among investors about the company's recent performance and future prospects.

Neuronetics Inc. has been recognized for its positive signals, making it a favorable investment choice at current levels. Analysts have set an average one-year price target of $6.83 for the stock, with some estimates reaching as high as $8.00. This optimistic outlook is supported by the company's recent financial performance, which includes an 84% increase in revenue for the first quarter of 2025, driven by the acquisition of Greenbrook. The company also projects positive cash flow for the future.

Despite the positive revenue growth, Neuronetics reported a net loss of $12.7 million, or $0.21 per share, for the first quarter of 2025. This loss, while larger than the previous year's $7.9 million, or $0.27 per share, is attributed to increased investment in growth initiatives. The company's stock volatility, with a beta of 1.92, indicates that it is 92% more volatile than the S&P 500, which may contribute to the recent price drop.