Viking Therapeutics reported a quarterly net loss of $45.63 million for Q1 2025, up from $27.36 million in the previous year, pushing the stock up 7.7% over the last week. Despite the larger loss, broader market trends indicate that investors focused on overall market optimism, especially in technology and biotech sectors, may have driven this move. Market indices were buoyant, with the Nasdaq Composite up 2.3% amid positive earnings reports and expectations of tariff policy improvements. Viking's performance reflects investor interest in the biotech sector amidst general market gains rather than specific company events.

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Over the past three years, Viking Therapeutics' shares have delivered a very large total return of 965.70%. This performance highlights substantial long-term gains, contrasting with its recent one-year underperformance against the broader US market, which gained 5.9%, and the US Biotechs industry, which saw a 3.2% decline. Despite short-term volatility, these returns underscore strong investor interest in the company over the longer-term period.

The recent 7.7% weekly stock price gain, despite a larger quarterly net loss of US$45.63 million for Q1 2025, reflects shifting investor sentiment driven by market trends rather than company-specific news. This movement aligns with broader market optimism, particularly within the burgeoning biotech sector. While the stock is currently trading below the consensus analyst price target, suggesting potential upside, the revenue and earnings forecasts may still face headwinds given the company's unprofitability and the anticipated 6.1% average annual earnings decline over the next three years. The price move, in context with the projected fair value, indicates a potential valuation gap but needs careful consideration of the company's financial trajectory and broader economic conditions.

Evaluate Viking Therapeutics' prospects by accessing our earnings growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqCM:VKTX.

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