Viking Therapeutics (NASDAQ: VKTX) shares exploded higher after the clinical-stage drugmaker announced successful results from a clinical trial with an experimental weight loss drug. Viking Therapeutics' weight management candidate could produce blockbuster sales down the road,

Viking Therapeutics stock plunged early Thursday on an earnings report that included mostly incremental updates for its weight-loss drugs.

And with a growing number of companies in the GLP-1 space, investors may be losing interest in the stock. Could Viking's rapidly declining valuation be a sign that the bubble has burst for it, given its inflated price, or is the healthcare stock due for a big rally this year?