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Shares of healthcare leader Teladoc (TDOC -1.26%) fell 12.6% in May, according to data from S&P Global Market Intelligence. The main factor behind the company’s decline was the release of its first quarter results in April, which disappointed some investors.
Tdoc Stock
In 2021 Teladoci’s phase is active. 26.6% through Friday, June 4, while the broader market returned 13.4% during this period. In 2020, the stock rose by 139%, at the end of the Covid-19 pandemic. That performance made it the best-performing stock of the year, a stock with a market cap of at least $10 billion.
What Is Going On With Teladoc (tdoc) Stock Today?
Teladoc shares’ weak performance last month was largely due to first-quarter earnings that missed Wall Street’s consensus estimate and a fall in that result.
After the company released on April 28 preliminary results, shares of Teladoc fell in late April and early May. The initial decline was compounded by two Wall Street analysts lowering their price target for the stock. To put some numbers on this volatility, on April 29 – the day after the earnings release – the stock fell 8.3%. At the end of the first week of May, the loss of the stock price was 18.9%. Prosapia makes a small monthly loss at the end of the month.
In the first quarter, Teladoc’s revenue rose 151% year-over-year to $453.7 million, which was ahead of analysts’ expectations of $452 million and near the top of the company’s guidance of $445 million.
It got a boost in revenue from the acquisitions of Livongo Health and InTouch Health, both of which happened last year. Organic revenue, which excludes the impact of these acquisitions, increased 69%. Growth is really powerful.
Teladoc Health (tdoc) Pe Ratio Chart
The results of this fund, however, did not match Vici’s predictions. Net loss was $199.6 million, or $1.31 per share, up from a net loss of $29.6 million, or $0.40 per share, a year earlier. Analysts are looking for a loss per share of $0.62.
A significant portion of the net loss was attributable to a non-cash charge of $87.0 million, or $0.57 per share, related to the acquisition of Livongo.
In the second quarter, earnings for management were between $495 million and $505 million. This means 105% to 110% growth each year.
Even in 2021, he highlighted the forecast of total revenue. It now expects revenue of $1.97 billion to $2.02 billion, up from its previous estimate of $1.95 billion to $2.0 billion. This means an 80% to 85% increase each year.
Top Stock Trades For Tuesday: Fsly, Sofi, Tdoc, Clov
Is Teladoc stock the latest opportunity to buy a trap? Yes, according to our partner Sean Williams, who recently called for an increase of three products to be purchased in June.
Beth McKenna has no place in the specified tree. Motley is a shareholder and advisor to Teladoc Health. Motley has plans to open.
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Teladoc Is Becoming The Health Care Information Backbone Of The U.s., Says Cathie Wood
It’s better with the Motley Fool. Get stock tips, stock recommendations and more from The Motley Fool’s premium service.Teladoc (NYSE:TDOC) will forever be remembered as the next tech crash child. Stocks were ordered to astronomical levels as investors expected increased demand during the crisis to lead to sustained gains later. That prediction proved wrong as the company saw its growth rate slow and its growth rate reverse. While the stock is unlikely to return to record highs, at least not anytime soon, the weak valuation setup has made the stock a surprise even from a moderate growth perspective.
TDOC will close at $300 per share in early 2021. Since then, the stock has fallen a whopping 90% from its current price. The stock has fallen so much that it is trading 60% below its pre-pandemic value and below its 2015 level.
The stock appears to have gained a lot of popularity thanks to the founding of ETF portfolio manager ( ARKK ) Cathie Wood, but investor confidence in Wood has waned. The stock should not be trading as it is, but today I would argue that it should not be trading as low as it is now.
Last quarter revenue was up 18% but adjusted EBITDA was down 30%. BetterHelp has increased revenue by 40% each year. The break between revenue and EBITDA growth is due to a 60% increase in sales and marketing recently.
Teladoc Stock: We Warned You Not To Buy Before Earnings (nyse:tdoc)
Even after the pandemic, TDOC continued to increase its utilization rate (defined as visits shared by all members). That said, the 24% utilization rate is still very low due to one factor being that there are many visits for the same patient.
Tax charges include out-of-pocket medical expenses. You can think of the following business model – TDOC earns $2 for every $1 paid to match doctors with patients. Adjusted EBITDA added $51 million in equity-based compensation in the quarter, so GAAP net income remained negative.
TDOC ended the quarter with $884 million in cash versus $1.53 billion in debt. TDOC’s net debt position is not excessive due to positive cash-generating activities.
Hopefully, TDOC has lowered its guidance again and is now expected to return to declines between 18% and 23%. The fact that adjusted EBITDA is still expected to decline is problematic, as it would mean that the company can only sustain growth by increasing advertising spending.
Teladoc Health Stock Is Pricing Right
Now, developers have encountered a disappointing prospect for expansion. When called for an interview, the manager repeated that he could not offer the program for several years.
Remember that previously TDOC was able to increase revenue by at least 25% by 2024 based on 1-5% membership growth and an average profit of 25% per membership growth.
That government was probably the biggest driver of the recent surge and distrust of that leadership – not to mention the removal of official leadership – removed any support from the stock. However, at recent prices, the stock is trading at 2x sales. Consensus forecasts call for double-digit top-line growth over the next decade.
It doesn’t make sense for the stock to return to an all-time high based on new growth forecasts, as 20x sales versus 15% top-line growth would be too much to expect even at pre-crash estimates. But the current stock price is worse than worst. I can see the company eventually being able to maintain 30% of its revenue over time. But let’s consider a gross margin of 15%. Using a 1.5x price to earnings growth ratio (‘PEG ratio’), I estimate a fair market value of around 3.5x, which means a stock price of $60 per share has returned almost 100% in the past month.
Tdoc Stock Alert: What To Know As Svb Securities Upgrades Teladoc
What are the main risks? I have mentioned above the opportunities to increase growth and drive advertising costs only. An important part of the bullish thesis is the world’s approach to physical life. On paper, this thesis seems reasonable – most doctor visits do not require personal contact and most involve answering patient questions. But it is possible that at first he did not care about the good of the common people. If this is true, virtual health care may not benefit from the same globalization and commercialization campaigns. Another danger is overpowering. If cash flow generation deteriorates, TDOC may face sudden liquidation risks with high interest rates and cash burn causing significant damage to the balance sheet. He feared for his life. Although TDOC has the largest network, it’s possible that regional health plans could create their own competitive products — it’s unclear whether a national presence gives TDOC an advantage over smaller operators. After all, if regional health systems can adequately serve their local communities, are mental health offerings sufficient to serve those same communities?
TDOC stock continues to be a high-risk option, despite discussions with subscribers about the best growth stocks I’ve seen.