Insights

Why Teladoc Stock Is Up Today

What happened 
Shares of Teladoc Health (NYSE: TDOC) were rising today on no company-specific news. Instead, some investors may be snatching up shares of the telemedicine company after its share price plunged 40% last week following the release of the company’s first-quarter financial results.
The healthcare stock jumped by 9.4% as of 3:50 p.m. ET.
So what 
Teladoc’s share price cratered 40% on April 28 after the company released its first-quarter results. Investors focused their attention on the fact that the company recorded a $6.6 billion non-cash goodwill impairment charge and significantly lowered its annual guidance. 
Image source: Getty Images.

But now some investors are seeing the company’s massive share-price plunge as a buying opportunity and are adding the stock to their portfolio today. 
This optimism may have been spurred by comments made by Ark Invest CEO and co-founder Cathie Wood. Following the stock’s decline, Wood said that Teladoc Health is in the “same league” as Amazon. Wood’s collection of exchange-traded funds (ETFs) owns a total of 11% of Teladoc’s outstanding shares. 
Now what 
Despite Teladoc’s share-price jump today, the stock is still down a staggering 78% over the past 12 months. This drop doesn’t mean that Teladoc couldn’t end up being a good long-term investment, but investors should know that more short-term volatility is likely ahead. 
Investors are still processing lots of information about rising inflation in the U.S. and a potential rate hike by the Federal Reserve this week. As they try to assess how the U.S. economy is doing, investors can likely expect more share-price swings from Teladoc and the broader market.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Teladoc Health. The Motley Fool has a disclosure policy. –

What happened 

Shares of Teladoc Health (NYSE: TDOC) were rising today on no company-specific news. Instead, some investors may be snatching up shares of the telemedicine company after its share price plunged 40% last week following the release of the company’s first-quarter financial results.

The healthcare stock jumped by 9.4% as of 3:50 p.m. ET.

So what 

Teladoc’s share price cratered 40% on April 28 after the company released its first-quarter results. Investors focused their attention on the fact that the company recorded a $6.6 billion non-cash goodwill impairment charge and significantly lowered its annual guidance. 

Image source: Getty Images.

But now some investors are seeing the company’s massive share-price plunge as a buying opportunity and are adding the stock to their portfolio today. 

This optimism may have been spurred by comments made by Ark Invest CEO and co-founder Cathie Wood. Following the stock’s decline, Wood said that Teladoc Health is in the “same league” as Amazon. Wood’s collection of exchange-traded funds (ETFs) owns a total of 11% of Teladoc’s outstanding shares. 

Now what 

Despite Teladoc’s share-price jump today, the stock is still down a staggering 78% over the past 12 months. This drop doesn’t mean that Teladoc couldn’t end up being a good long-term investment, but investors should know that more short-term volatility is likely ahead. 

Investors are still processing lots of information about rising inflation in the U.S. and a potential rate hike by the Federal Reserve this week. As they try to assess how the U.S. economy is doing, investors can likely expect more share-price swings from Teladoc and the broader market.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Teladoc Health. The Motley Fool has a disclosure policy.

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