What Happened?
Shares of healthcare tech company GoodRx (NASDAQ: GDRX) jumped 1.4% in the afternoon session after the stock's positive momentum continued following a potential partnership with TrumpRx and an expanded relationship with Kroger.
The stock's rise followed a significant jump the previous day after the company announced it was expanding its partnership with Kroger to offer branded drugs at discounted prices. GoodRx's RxSmartSaver solution was set to be available at Kroger's 2,200 pharmacies. This expansion also included coverage for popular weight loss medications. The news appeared to build investor confidence in the company's growth prospects.
After the initial pop the shares cooled down to $4.54, up 1% from previous close.
Is now the time to buy GoodRx? Access our full analysis report here.
What Is The Market Telling Us
GoodRx’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 2.6% on the news that the U.S. Commerce Department initiated a national security investigation into medical equipment and devices, raising concerns about potential tariffs. The probe, conducted under Section 232 of the Trade Expansion Act, examines whether imports of items like syringes, infusion pumps, and surgical instruments pose a national security risk. Such investigations can pave the way for new import duties, creating a significant overhang for the sector. The goal of potential tariffs would be to boost domestic manufacturing by increasing the cost of foreign goods. This development has introduced new uncertainty for the industry, leading to broad-based declines in the stocks of major manufacturers, including Baxter International and GE HealthCare, as investors weigh the potential impact on supply chains and costs.
GoodRx is flat since the beginning of the year, and at $4.54 per share, it is trading 35.9% below its 52-week high of $7.09 from October 2024. Investors who bought $1,000 worth of GoodRx’s shares 5 years ago would now be looking at an investment worth $85.73.
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