Insights

Why Teladoc Health Stock Rose More Than 7% on Wednesday

What happened

Shares of Teladoc Health (NYSE: TDOC), a bellwether telehealth company, rose more than 7% this morning. The stock isn’t moving in response to relevant news about the underlying business or the telehealth industry because there is none. The stock was still up 6.95% as of 11:18 a.m. ET on Wednesday.

So what 

Teladoc Health was a stock market darling that could do no wrong during the pandemic’s early days. Now that most of us can see our doctors in person again, the demand for telehealth services has decelerated. When the company reported first-quarter results this April, management had to walk back the 2022 revenue guidance it had provided just three months earlier. Instead of a range of $2.55 billion to $2.65 billion, the company now expects total revenue to land in a range between $2.4 billion and $2.5 billion.

The midpoint of the revised revenue expectation represents a 20.5% year-over-year gain. That isn’t bad, but it doesn’t compare well to the whopping 86% gain reported in 2021.

Now what

Teladoc’s market cap has fallen from over $36 billion at its peak down to just $5.4 billion at recent prices. That’s a big drop, but we don’t know if this stock has reached a bottom yet. 

The company’s inability to execute on the $18.5 billion acquisition of Livongo led to a $6.6 billion write-down in the first quarter. Livongo’s focus on chronic care was supposed to help Teladoc Health differentiate itself from a slew of competing telehealth services. While there’s a chance it can turn its ship around, it’s probably best to watch from the sidelines for now.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teladoc Health. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info