Why Teladoc Health Stock is Shooting Up Today

Teladoc Health Stock NYSE:TDOC

Teladoc Health Stock (NYSE:TDOC)

Teladoc stock is seeing a significant increase in its share price today, with the stock has gained 8.7% as of 10:45 a.m. Eastern Time. The head of the virtual care service didn’t make any announcements and didn’t have any other evident catalysts either. Instead, the good momentum for the general stock market served to boost Teladoc’s stock price, which occurred concurrently with a 2.7% increase for the S&P 500.

Then What?

The share price in Teladoc stock has dropped by about 70 percent so far this year. It should come as no surprise that the stock of telehealth companies has benefited from the market’s recent upswing. When the tide rises, it has a tendency to raise all boats.

However, even if the stock market maintains its upward trend, this does not always guarantee that Teladoc Health (NYSE:TDOC) will follow suit and move in the same direction. The price of the company’s shares dropped dramatically in 2021, while the S&P 500 index saw a solid performance over the same period.

The achievement of a better-than-anticipated return on investment is Teladoc’s top priority. That is something that the supplier of virtual health care has not done previously, at least not on the financial side of things.

The most significant obstacle for Teladoc Health stock has been the significant write-offs of goodwill connected to the company’s 2020 purchase of Livongo Health. Additionally, the firm sees slower development in its BetterHelp mental health division than projected.

What’s Next?

A prolonged economic slump might probably be detrimental to Teladoc Health stock, particularly its goods and services sold directly to customers. On the other hand, this may also put some of the company’s smaller rivals at a disadvantage, which would be to Teladoc’s advantage over the longer term.

What comes next with the COVID-19 pandemic is maybe the most unpredictable variable for Teladoc at this point in time. Suppose the United States will see yet another significant coronavirus outbreak this winter. In that case, the number of telehealth visits might significantly rise, which would benefit Teladoc Health Stock’s (NYSE:TDOC) bottom line.

Featured Image-  Megapixl @ Rafaelhenriquepress

About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.