Teladoc (TDOC.US) has been providing services in the field of remote medicine since 2009. In 2021, the company employed nearly 4,500 doctors on the platform, while the total number of visits amounted to 15.3 million and increased by 38% compared to 2020, which turned out to be a real catalyst for the company's operations. During the pandemic, Teladoc recorded an impressive 86% year-on-year increase in revenues, which contributed to its growing position among companies in the medical industry. However, in the following months company's stock has dropped by more than 80% compared to the price peaks in autumn 2021:
- Teladoc remains the largest company in the world when it comes to the virtual medicine sector. According to analysts' estimates, the telemedicine market may be worth nearly USD 640 billion by 2028, which gives a nearly 31% annual growth rate;
- In a report published in February, Teladoc expects an increase in the number of visits by approximately 4.3 million in the current quarter. If the positive forecasts prove correct, and the company is able to maintain such dynamics until the end of 2022, the number of visits may even break the record-breaking 2021, during which patients massively registered visits remotely due to the COVID pandemic and lockdowns;
- Estimated revenues for the quarter are to amount to approximately USD 565 million, Teladoc also expects a decrease in net loss per share to USD 0.50 compared to 1.38 in Q1 2021;
- Earnings per share for the previous quarter beat analysts' expectations by almost 88%;
- One of the company's largest shareholders is the ArkInvest fund, run by Cathie Wood, known for its high-profile success in recent years, when the fund's portfolio achieved record results, and Cathie Wood was recognized as one of the most effective portfolio fund managers from Wall Street;
- The valuation of ETFs operated by ArkInveest has suffered significantly from a shift in the Fed's monetary policy and investors' retreat from risky assets. ArkInvest continues to operate, and Wood upholds long-term forecasts for all companies in the fund's portfolio and announces an 'burst of innovation' which is contradictory to most analysts which are pointing to several risk factors;
- In February 2022, Teladoc signed an agreement with Amazon, which may bring the company a lot of additional clients in the coming years, but this was not met with a euphoric reaction from the market;
- Consumer demand confirms that the trend of remote medicine development may go beyond the pandemic and the demand for this kind of services may continue to rise. A Forbes study shows that approximately 63% of respondents would be willing to use remote medicine again;
- The company has historically struggled to obtain all the necessary licenses to operate in all US states, including Texas, but these obstacles have been overcome and is now operating smoothly;
- The trend among medical and pharmaceutical companies led to a market euphoria during the pandemic, which ended with a panic sell-off after the pandemic ceased to be the primary factor influencing the market and investor behavior.
- The main threat to Teladoc expansion is a declining number of new clients and shrinking cash flow, which may not cover the huge expenses incurred by the company due to the scaling of its operations;
- In periods of economic uncertainty, investors usually move away from unprofitable assets only to buy them when the market starts to recover with a simultaneous change in the economic background (e.g. monetary tightening / loosening).
- Until the firm proves profitable, the stock will likely be very volatile due to investor uncertainty and market sentiment.
- On April 27, Teladoc will publish its financial results for the first quarter of 2022.
Teladoc (TDOC.US), interval W1. The share price is approaching the 2018 lows, although the company has expanded significantly since then. On the other hand, the sellers' pressure is not waning so far. The nearest resistance is located around the psychological $ 100 level. Source: xStation5
