Dexcom (DXCM) Faces Challenges Over GLP-1s’ Long-Term Effects on Its Target Market

The Ithaka Group, an investment advisory firm, released the “Ithaka US Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the weak market, the fund underperformed during the quarter, by falling 6.3% compared to the Dow’s 2.6% fall, the S&P 500’s 3.7% decline, the NASDAQ’s 4.1% decline, and the fund’s benchmark, the Russell 1000 Growth’s 3.1% decline. The underperformance of the fund during the quarter was entirely due to stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ithaka US Growth Strategy highlighted stocks like DexCom, Inc. (NASDAQ:DXCM) in the third quarter 2023 investor letter. Headquartered in San Diego, California, DexCom, Inc. (NASDAQ:DXCM) is a medical device company. On October 27, 2023, DexCom, Inc. (NASDAQ:DXCM) stock closed at $89.29 per share. One-month return of DexCom, Inc. (NASDAQ:DXCM) was -5.56%, and its shares lost 26.07% of their value over the last 52 weeks. DexCom, Inc. (NASDAQ:DXCM) has a market capitalization of $34.502 billion.

Ithaka US Growth Strategy made the following comment about DexCom, Inc. (NASDAQ:DXCM) in its Q3 2023 investor letter:

“DexCom, Inc. (NASDAQ:DXCM) is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems, primarily for people with diabetes. Diabetes is a chronic, life-threatening disease for which there is no known cure. DexCom’s CGM system is superior to traditional finger-stick tests because it provides users with continuous data (including glucose trends and time spent in hyper or hypoglycemia) versus a snapshot in time. Much like Insulet, Dexcom’s stock suffered from fears surrounding the long-term impact of GLP-1’s on the company’s addressable market.”

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DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of second quarter which was 66 in the previous quarter.

We discussed DexCom, Inc. (NASDAQ:DXCM) in another article and shared Carillon Eagle Mid Cap Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.