Ceribell's Retail Popularity Surges After Small-Cap Medtech Firm Assures No Tariff Impact Until Q4

Shares of Ceribell Inc. soared over 34% on Friday to mark their best session ever after the commercial-stage medical technology company said it would not be impacted by President Donald Trump's tariffs until the end of the year.

CeriBell said in an 8-K filing that it expects no material financial impact from new U.S. tariffs until at least the fourth quarter of 2025. 

The company said it sources its headband products from two contract manufacturers in China, with final inspection and packaging done in California. 

According to Ceribell, its current U.S. inventory is expected to cover demand through the third quarter of 2025.

CeriBell said it uses a first-in, first-out accounting method, which delays the tariff impact on the cost of goods sold. 

After existing inventory runs out, the company expects gross margins to drop by 8–10 percentage points, down from 87% in 2024, based on a 145% tariff rate on Chinese goods.

The company added that the new tariffs would not affect subscription product revenue.

CeriBell's statement led to a surge in the stock price and a 40.5% weekly jump in the stock’s follower count on Stocktwits — the highest among healthcare stocks.

Sentiment turned 'extremely bullish' from 'extremely bearish' a week ago, with one retail watcher noting that the stock was "showing high relative strength."

Earlier this month, Ladenburg reportedly initiated coverage of Ceribell with a 'Buy' rating and $32 price target, which implies an over 100% upside from the last close.

According to The Fly, the research firm told clients that the company has a first-mover advantage in scaling rapid electroencephalography technology for acute neurological care.

CeriBell's stock has lost more than 45% this year.

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