Why Recursion Pharmaceuticals Stock Is Sinking Today

Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) were sinking 8.2% lower as of 10:57 a.m. ET on Monday. The clinical-stage biotech company, which is a pioneer in using artificial intelligence (AI) in drug discovery, didn't announce any news that would cause its stock to fall, though.

Part of the reason Recursion's shares tumbled is that the overall stock market has retreated as investors worried that the Trump administration's tariffs could cause an economic recession. However, the stock was also likely negatively impacted by CNBC Mad Money host Jim Cramer's comments on Friday. He expressed reservations about buying shares of Recursion Pharmaceuticals in light of the stock's major decline in recent weeks.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

What's going on with Recursion?

Cramer stated on Mad Money at the end of last week's trading that Recursion's stock performance has "been disastrous" since the company's management appeared on his program in May 2024. He added, "We're going to have to hold off. I gotta meet them face to face and see what's going on."

So what is going on with Recursion? The company completed its acquisition of Exscientia in November 2024. In December 2024, Recursion reported encouraging interim data from a phase 1 study of REC-617 in treating solid tumors. In February 2025, the drugmaker announced positive 12-month results from a phase 2 study evaluating REC-994 in treating cerebral cavernous malformations (CCM).

However, investors were arguably irrationally exuberant following the news in February 2024 that Nvidia held on to its stake in Recursion while exiting several other positions in AI companies.

Is Recursion Pharmaceuticals stock a buy on the sell-off?

Risk-averse investors will probably be better off staying on the sidelines with Recursion Pharmaceuticals. However, the recent sell-off could be a good buying opportunity for aggressive investors willing to wait on Recursion's pipeline programs to hopefully fulfill their potential.

Should you invest $1,000 in Recursion Pharmaceuticals right now?

Before you buy stock in Recursion Pharmaceuticals, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $690,624!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 10, 2025

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.