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Is ImmunityBio, Inc. Stock a Buy Right Now?

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Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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ImmunityBio Inc.’s stock is significantly influenced by their recent challenges with obtaining FDA approval for their bladder cancer drug, causing investor concern about the company’s future prospects. On Friday, ImmunityBio Inc.’s stocks have been trading down by -9.67 percent.

Market Impact of Recent News

  • The Q4 revenue for ImmunityBio, Inc. ($7.6M), didn’t meet the analysts’ expectations of $9.6M, signaling potential troubles.

Candlestick Chart

Live Update At 11:37:37 EST: On Friday, March 28, 2025 ImmunityBio Inc. stock [NASDAQ: IBRX] is trending down by -9.67%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • ImmunityBio, along with a few other companies like Driven Brands Holdings and Hasbro, is under scrutiny for possible legal infractions by its executives.

  • Investigations are ongoing regarding potential fiduciary duty breaches within ImmunityBio’s board, which adds unneeded pressure on the company.

  • Legal pressures also mount due to alleged officer misconduct at ImmunityBio, which could lead to severe outcomes if accusations are confirmed.

  • ImmunityBio, facing class-action lawsuits, is also probed for its fiduciary duties, raising stakes for long-term stockholders.

Quick Overview of ImmunityBio’s Financials

As millionaire penny stock trader and teacher Tim Sykes, says, “Preparation plus patience leads to big profits.” In the world of trading, these qualities are essential for success. By taking the time to thoroughly research and understand market trends, traders can position themselves strategically to capitalize on opportunities. Patience allows traders to wait for the right moment to execute trades, avoiding impulsive decisions that can lead to losses. With both preparation and patience in their toolkit, traders are better equipped to navigate the complexities of the market and achieve significant returns.

ImmunityBio, Inc., a key player in the biotech sector, recently reported less-than-stellar financial results, adding further uncertainty about its future performance. The company’s reported revenue in the recent quarter was $7.6 million, marked by unfulfilled market expectations. It was a miss compared to the estimated $9.6 million. Furthermore, the company reports a loss of $59 million from continuous operations, with revenue showing mixed improvement over the past few years.

In terms of key financial ratios, ImmunityBio’s profitability metrics reveal significant negative figures. The EBIT margin stands at a staggering -1275.8%, while the profit margin continues to record a -2052.96%, suggestive of inefficiencies and consistent losses. Despite owning total assets of $382 million, liabilities far outweigh the equity. Current liabilities expanded, putting strain on cash flows despite ending with about $144 million in cash.

More Breaking News

Their cash flow statement indicates an ending cash position of $143 million, influenced by various factors including changes in account payables. The company has been able to increase its cash position but remains cash flow negative due to high operational and financing costs. ImmunityBio’s balance sheet also resonates that struggle; despite a solid current ratio of 3.4, which implies liquidity, the negative stockholder’s equity raises alarms.

Investigations and Potential Legal Repercussions

The legal climate surrounding ImmunityBio is filled with potential ramifications that bear weight on investors and stakeholders. Class-action lawsuits that target company officers focus on potential breaches of fiduciary duties. If proven, these claims could drastically influence the firm’s market value and attract hefty penalties. Officers from ImmunityBio are allegedly violating corporate laws, which could turn clients and investors wary. This environment, best described as a “legal storm,” casts shadows over ImmunityBio’s strategic decisions, and their ability to focus on research might suffer.

Investigations into the potential misconduct of its officers only aggravate fears, rousing investor concerns. Historically, events like these often lead to tumultuous times in stock performance, raising questions if recent dips may signify a containment of further decline or precursor to a volatile descent.

Challenges and Future Outlook

ImmunityBio must strive to overturn its current challenges, both financial and legal, to sustain better future growth trajectories. Present financial struggles paint a tricky picture of stagnation, exacerbated by legal troubles that linger over operations. High expenses paired with intense scrutiny from external legal bodies suggest a bumpy road.

The fluctuating revenue streams and volatility captured in Intraday stock charts reflect the company’s fluctuating performance alongside broader market trends. It’s important to note that any recovery in stock value would closely depend on rectifying these internal conflicts and settling investigations amicably.

Final Thoughts

ImmunityBio confronts a labyrinth of hurdles—fraught with financial, legal, and operational challenges. Despite efforts to boost liquidity and reduce operation expenses, these goals remain unmet. Investor confidence is being tested in these testing times. Prospective investors must weigh the structures in place to counteract their losses wisely. As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” The road ahead, albeit daunting, might still yield new opportunities. But any trading decision should be meticulously evaluated in light of these persisting adversities.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”