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Why Did Recursion Soar 12%?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 7/18/2025, 2:33 pm ET 7/18/2025, 2:33 pm ET | 6 min 6 min read
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Recursion Pharmaceuticals Inc. stocks have been trading up by 4.8 percent after promising results boosted investor confidence.

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Live Update At 14:32:15 EST: On Friday, July 18, 2025 Recursion Pharmaceuticals Inc. stock [NASDAQ: RXRX] is trending up by 4.8%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recursion Pharmaceuticals Financial Snapshot

As traders navigate the financial markets, they must learn to adapt to ever-changing conditions. The path to success in trading is often riddled with challenges, and it is through these obstacles that traders grow. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” By internalizing this mindset, traders can transform their setbacks into opportunities for growth, continuously refining their techniques and honing their skills to achieve their trading goals.

Examining Recursion Pharmaceuticals’ recent financial data reveals interesting factors. The company, known for its AI-driven drug discovery platform, is in a dynamic phase given its recent business moves and financial results.

In the recent earnings report, Recursion revealed a revenue of approximately $58.49M. This, while respectable, highlights the challenges the firm faces in maintaining profitability — with ebit and profit margins deeply in the red at -959.9% and -961.53%, respectively. Despite the seeming gloom in net income from continuing operations sitting at a significant negative of $202.49M, Recursion remains a key player in the innovation space, albeit at a high cost.

Another interesting aspect is the company’s total assets of $1.31B, with a leverage ratio of 1.4. Though investor concerns might arise around a high price-to-sales ratio of 37.54, the firm maintains a strong current ratio of 4.1, indicating good short-term financial health.

A contrast arises with their operating cash flow standing at a hefty negative value of $131.96M. But with aggressive steps like the acquisition of RallyBio’s interest in REV102, Recursion is banking on future success to overturn these figures. However, even as their operating expenses pinch the bottom line, their collaborative efforts such as partnerships with MIT liven up their narrative in combative AI paradigms within pharma spaces.

Moreover, the upcoming AI endeavors and enhancements related to the AI model, Boltz-2, in collaboration with MIT, may fuel further advancements. Recursion’s financial and strategic trajectory must be viewed in light of these innovative surges that acknowledge player reliance on breakthroughs and big data integration.

The Impact of Key Developments

The ripple effect of Recursion Pharmaceuticals acquiring full rights to REV102 has been fascinating, given the symphony of stock movements witnessed. The drug targets hypophosphatasia, a rare bone disease, and is positioned to potentially unlock new frontiers in treatment dynamics. Rallybio’s substantial 50% stock surge reflects the high expectations set by stakeholders on the future commercial success of REV102.

For Recursion, this development is particularly significant as it flexes its muscle by transitioning from a shared venture to asserting full command over a potentially lucrative segment. By cutting loose from the collaborative ropes, Recursion can now spearhead the drug’s trajectory and anticipated FDA approval processes unilaterally.

In the trades over the past couple of weeks, the market observed Recursion’s stock oscillating around its 5.31 open price on Jul 15, 2025. Suddenly, with the announcement of acquiring Rallybio’s stake in REV102, Recursion’s closing price jumped to 5.78 on Jul 18. These numerical insights paint a picture of a waning momentum flipped on its head with promising news. Looking particularly at the intraday moves where stocks hit high peaks close to 6.1 but simmered down around 5.8, the volatile heart dynamic of this evolving sector appears vivid.

The market has undoubtedly taken note, and while the euphoria of today cannonballs positive trader sentiment, it prompts inquisitive minds to contemplate the diligent road lying ahead for Recursion. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” This principle is evident in the strategic timing and execution Recursion displayed in acquiring full rights, reinforcing the potential for grandeur if navigated adeptly. Bear in mind that these financial snapshots tell tales of courage and ambition amid the labyrinth, leaving thriving testaments of resilience and stealth in motion. Growing with such an energetic vibe, traders await the crescendo, perhaps anticipating replicating this leap in their portfolios.

In conclusion, Recursion Pharmaceuticals stands out not just as a beneficiary of strategic alignments and partnerships but also as a potential harbinger of pharmaceutical revolutions that technologies like AI aim to catalyze. Unfolding drama expects to pepper the horizon, as certainty and development walk hand in hand for Recursion. Whether this honeymoon period persists remains a question, but for now, this trailblazing path seems more than just paved with good intentions. Amidst these intricacies, Recursion Pharmaceuticals emerges as a beacon of future potential amidst clouds of past tribulations.

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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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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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 .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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”