rakuten left binance left net_left adver left

Teladoc Stock: Could Cathie Wood Be Wrong?

Star investor Cathie Wood has grown fond of a few stocks. One of her favorites of late is Teladoc (NYSE:TDOC). Given Wood's track record, that's a great thing for long-term growth...
Teladoc Stock: Could Cathie Wood Be Wrong? © Reuters. Teladoc Stock: Could Cathie Wood Be Wrong?

Star investor Cathie Wood has grown fond of a few stocks. One of her favorites of late is Teladoc (NYSE:TDOC).

Given Wood's track record, that's a great thing for long-term growth investors.

Teladoc is a platform that offered virtual medical visits during the pandemic, when people couldn’t opt for in-person visits. It provided options to patients in case local doctor offices closed, or reduced hours temporarily.

Indeed, Teladoc’s business saw a massive surge during the pandemic. The telemedicine platform reported a 98% jump in 2020 revenue, with a 156% surge in patient visits.

The company also made several acquisitions to ensure a smooth future. It acquired InTouch Health to associate with more hospitals and health systems. It purchased Livongo to boost its chronic disease management capabilities.

Although the company seems to be performing well, there are concerns about its future in the post-pandemic world. The share price has fallen 40% this year due to concerns of stalled growth in the coming days. (See TDOC stock charts on TipRanks)

Notably, many investors and analysts are optimistic about Teladoc’s future in the absence of a pandemic. However, there are some valid reasons to believe otherwise. I am bearish on the stock.

Stiff Competition Ahead

Teladoc is going to face tougher competition from newly emerging rivals in the next few years than it faces today. Talkspace (TALK) is one such major potential competitor. Talkspace's focus is on specific market segments, such as behavioral health. Similarly, other competitors would be focusing on taking a broader market approach just like Teladoc.

Therefore, it may be increasingly difficult for Teladoc to gain market share over the longer-term. Competitors in any sector eat into a given stock's dominant position.

As per analysts, the global telemedicine market will rise from $79 billion in the previous year, to over $396 billion by 2027. That's great. However, what Teladoc's market share will be five years from now is the question many investors need to ask.

What Can Go Wrong with Teladoc?

While many believe Teladoc is likely to do just fine without a public health crisis, there are some genuine concerns about the company’s future prospects. There are three major headwinds that can hit TDOC stock in the future. These are consistently higher costs, an inability to bring in new members, and lost market share. Each of these factors have already started to impact the stock.

TDOC isn’t quite profitable at the moment. Teladoc’s most valuable service, which is on-demand virtual access to doctors, is quite expensive. With more and more telemedicine companies coming into the market, it is proving quite costly to retain doctors and health experts.

What’s worrying is that there may not be a ton of leeway for Teladoc to engage in cost-cutting strategies. This is because doctors have options. They can move to other rival platforms if they feel they aren’t sufficiently compensated for their labor, or simply go back to doing what they were doing before the pandemic.

In addition, gaining new subscribers might also be an issue for TDOC. Teladoc’s paid membership increased by only 2 million between Q2 of 2020 and 2021. However, its service utilization moved up from 16% to 21.5% within the same time span. The company should, therefore, look for ways to tackle its rising expenses.

Wall Street’s Take

As per TipRanks' analyst rating consensus, Teladoc stock is a Moderate Buy. Out of 20 analyst ratings, there are 12 Buy recommendations, and eight Hold recommendations.

The average TDOC price target is $201.79. Analyst price targets range from a high of $291 per share, to a low of $142 per share.

Bottom Line

The astronomical rise in telehealth visits prompted by the pandemic is now witnessing a sharp decline. Telemedicine visits accounted for almost 70% of all medical interactions until this spring.

This number dropped to 20% by the middle of July. Most physicians believe that virtual visits will reduce significantly by next year. Accordingly, Teladoc is focusing on acquisitions to expand its services, and broaden its growth prospects.

There's reason to be bearish on Teladoc stock in this environment. Given Cathie Wood's track record, it's hard to bet against her. But this might be one stock that's got a valuation that may not hold up during the next downturn in the stock market.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

ig right nyse right Neteller adver right
APPROVED BROKERS
Row 1 Left net_home_top Row 1 Right Row 2 Left Row 2 Center Row 2 Right Main Right TOP 07 Main Right TOP 06 Main Right TOP 05 Main Right TOP 04 Main Right TOP 03 Main Right TOP 01
27-09-2021 19:30:00 (UTC+7)

EUR/USD

1.1695

-0.0019 (-0.16%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (6)

EUR/USD

1.1695

-0.0019 (-0.16%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (6)

GBP/USD

1.3695

+0.0013 (+0.10%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (3)

Sell (6)

USD/JPY

110.97

+0.26 (+0.23%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

AUD/USD

0.7254

-0.0004 (-0.06%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (3)

USD/CAD

1.2664

+0.0012 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

EUR/JPY

129.76

+0.07 (+0.05%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (3)

EUR/CHF

1.0856

+0.0034 (+0.31%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Gold Futures

1,751.15

-0.55 (-0.03%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Silver Futures

22.692

+0.267 (+1.19%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (0)

Copper Futures

4.2787

-0.0068 (-0.16%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Crude Oil WTI Futures

75.44

+1.46 (+1.97%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (2)

Brent Oil Futures

78.69

+1.46 (+1.89%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (6)

Sell (2)

Natural Gas Futures

5.480

+0.280 (+5.38%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (7)

Sell (1)

US Coffee C Futures

193.12

-1.23 (-0.63%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (8)

Euro Stoxx 50

4,166.75

+8.24 (+0.20%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (7)

S&P 500

4,455.48

+6.50 (+0.15%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (8)

DAX

15,574.45

+42.70 (+0.27%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

FTSE 100

7,048.74

-2.74 (-0.04%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (2)

Hang Seng

24,208.78

+16.62 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,253.88

-5.16 (-0.23%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (11)

IBEX 35

8,986.50

+113.40 (+1.28%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (0)

BASF SE NA O.N.

64.545

+0.845 (+1.33%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Bayer AG NA

47.32

+0.84 (+1.81%)

Summary

Neutral

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (2)

Allianz SE VNA O.N.

195.50

+3.16 (+1.64%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (1)

Sell (4)

Adidas AG

279.93

-1.64 (-0.58%)

Summary

Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (2)

Sell (4)

Deutsche Lufthansa AG

6.476

+0.243 (+3.90%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (7)

Sell (2)

Siemens AG Class N

146.81

-1.30 (-0.88%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Deutsche Bank AG

11.003

+0.168 (+1.55%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (3)

Sell (7)

 EUR/USD1.1695↑ Sell
 GBP/USD1.3695↑ Sell
 USD/JPY110.97↑ Buy
 AUD/USD0.7254↑ Sell
 USD/CAD1.2664↑ Buy
 EUR/JPY129.76↑ Sell
 EUR/CHF1.0856↑ Buy
 Gold1,751.15↑ Buy
 Silver22.692↑ Buy
 Copper4.2787↑ Buy
 Crude Oil WTI75.44Buy
 Brent Oil78.69↑ Buy
 Natural Gas5.480↑ Buy
 US Coffee C193.12↑ Sell
 Euro Stoxx 504,166.75↑ Sell
 S&P 5004,455.48↑ Sell
 DAX15,574.45↑ Sell
 FTSE 1007,048.74Neutral
 Hang Seng24,208.78↑ Buy
 Small Cap 20002,253.88↑ Sell
 IBEX 358,986.50↑ Buy
 BASF64.545↑ Sell
 Bayer47.32Neutral
 Allianz195.50Sell
 Adidas279.93Sell
 Lufthansa6.476↑ Buy
 Siemens AG146.81↑ Sell
 Deutsche Bank AG11.003↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,665/ 5,715
(5,665/ 5,715) # 900
SJC HCM5,635/ 5,700
(0/ 0) # 885
SJC Hanoi5,635/ 5,702
(0/ 0) # 887
SJC Danang5,635/ 5,702
(0/ 0) # 887
SJC Nhatrang5,635/ 5,702
(0/ 0) # 887
SJC Cantho5,635/ 5,702
(0/ 0) # 887
Cập nhật 27-09-2021 19:30:02
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,750.69+1.20.07%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2204022480
RON 95-II,III2194022370
E5 RON 92-II2071021120
DO 0.05S1658016910
DO 0,001S-V1693017260
Dầu hỏa1564015950
ↂ Giá dầu thô thế giới
WTI$75.46-1.48-1.96%
Brent$79.57-1.52-1.91%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.630,0022.860,00
EUR25.993,7727.346,60
GBP30.324,2231.591,18
JPY200,45212,05
KRW16,7520,39
Cập nhật lúc 18:54:42 27/09/2021
Xem bảng tỷ giá hối đoái
binance main right Fxpro aetos main right adver main right