Dexcom Stock Plummets 40% After Disappointing CGM Sales and Weak Guidance

1. Stock Drop: Dexcom's stock fell by nearly 40% after the company reported disappointing revenue and weak guidance for the second quarter.
2. Revenue Miss: The company's revenue was $1 billion, missing the expected $1.04 billion, and its full-year revenue forecast was lowered to $4 billion to $4.05 billion.
3. CGM Sales Challenges: Dexcom faced challenges in continuous glucose monitor (CGM) sales, including a lower number of new patients and issues with its sales team restructuring.
4. Rebate Impact: The accelerated timing of rebates for the G7 CGM system also negatively impacted sales.
5. International Performance: The company's international business came up short of expectations, leading to a need to refocus on relationships with medical equipment distributors.
6. Analyst Reactions: While some analysts believe the stock drop is overdone and that the issues are transient, others have downgraded the stock, citing self-inflicted problems.
7. Long-term Outlook: Despite the current challenges, many analysts remain optimistic about Dexcom's long-term growth potential in the continuous glucose monitoring market.