After Earnings, DXCM going for CHEAP

Dexcom is THE dominant biotech company creating Continuous Glucose Monitors (CGMs) for diabetics. You may have seen Nick Jonas on one of their commercials. I wear one of these devices every day of my life and can tell you first hand why their products should continue to carry them well into the future in this industry. Instead of the normal 6-8 times per day finger pricks, CGMs let diabetics see what their blood sugar is at essentially any point in time. All very cool, but not necessarily new technology. However, this company is far from reaching its full potential and is likely looking forward to much more continued success both in the near-long term. Here’s why: By far the highest quality product in the industry, and coming out with more innovative products at a rapid pace (seriously there is no one close). Market is still relatively untapped: CGMs initially came out ~ 20-25 years ago with a focus on Type 1 diabetics. Since then, there’s been a gradual expansion into offering to Type 2 as well. Type 2 diabetics make up the VAST majority of diabetics and many are still new to CGMs Great terms with the FDA: any new products coming from dexcom have been permitted with no shortcomings. It is extremely simple and safe to use. They can prove the effectiveness of their products with little effort Simple compatibility with the other devices a diabetic may use. This is a huge downside for many other CGMs, as these companies like to make all their diabetic devices in house under one roof. Dexcom instead focuses on making the CGM as perfect as possible, and allows other devices to read the data it collects. This has huge implications for when these devices become implanted internally (much sooner than we think!) Massive preemptive advertising spending for their next CGM, the G7. Their ad campaign with Nick Jonas was a tremendous success for them, and will likely see similar results for this next wave. This may hurt their earnings, but will off in the long term TLDR: Dexcom is dropping in price, but they’re not going anywhere. They lead an entire industry into the future with nearly perfect products that will only get better as the rest of the industry advances with it. I recommend the controversial buy low sell high strategy

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After Earnings, DXCM going for CHEAP

Apr 28, 2022

bullish

general Analysis

[1 min Read]

Dexcom is THE dominant biotech company creating Continuous Glucose Monitors (CGMs) for diabetics. You may have seen Nick Jonas on one of their commercials. I wear one of these devices every day of my life and can tell you first hand why their products should continue to carry them well into the future in this industry.

Instead of the normal 6-8 times per day finger pricks, CGMs let diabetics see what their blood sugar is at essentially any point in time. All very cool, but not necessarily new technology. However, this company is far from reaching its full potential and is likely looking forward to much more continued success both in the near-long term. Here's why:

  1. By far the highest quality product in the industry, and coming out with more innovative products at a rapid pace (seriously there is no one close).

  2. Market is still relatively untapped: CGMs initially came out ~ 20-25 years ago with a focus on Type 1 diabetics. Since then, there's been a gradual expansion into offering to Type 2 as well. Type 2 diabetics make up the VAST majority of diabetics and many are still new to CGMs

  3. Great terms with the FDA: any new products coming from dexcom have been permitted with no shortcomings. It is extremely simple and safe to use. They can prove the effectiveness of their products with little effort

  4. Simple compatibility with the other devices a diabetic may use. This is a huge downside for many other CGMs, as these companies like to make all their diabetic devices in house under one roof. Dexcom instead focuses on making the CGM as perfect as possible, and allows other devices to read the data it collects. This has huge implications for when these devices become implanted internally (much sooner than we think!)

  5. Massive preemptive advertising spending for their next CGM, the G7. Their ad campaign with Nick Jonas was a tremendous success for them, and will likely see similar results for this next wave. This may hurt their earnings, but will off in the long term

TLDR: Dexcom is dropping in price, but they're not going anywhere. They lead an entire industry into the future with nearly perfect products that will only get better as the rest of the industry advances with it. I recommend the controversial buy low sell high strategy

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DXCM

DexCom, Inc.

77.65

0.02
0.03%

Return

-81.20%
Change % Since Posting
-335.37
Change Since Posting
413.02
Price When Posted

Metrics

454.32
Target Price
9/ 10
Confidence
2-6 Months
Timeframe
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Earnings Release
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News
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SEC
Filing
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Sentiment
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