Buy the story, sell the news. That’s a reasonable explanation for why Viking Therapeutics (NASDAQ: VKTX) fell over 3% the day the company delivered its Q1 2026 earnings report.
For investors who may not be familiar with Viking Therapeutics, it’s important to understand that the company is not profitable and it’s still in the pre-revenue stage. So, evaluating the earnings report on the headline numbers doesn’t work. Instead, because it’s a biotechnology company, investors will want to pay attention to where the company is in its FDA timeline to assess the risk and reward. The FDA process takes time, and that’s presenting investors with the possibility of a sizable long-term reward if they’re comfortable with near-term risk.
