- After IPOing in September last year, Amwell shares quickly spiked to $43, but it has been down hill in 2021 as the telehealth market has cratered.
- Amwell remains a frontrunner in the nascent industry, however, with a market cap of $3bn.
- The company had losses of $225m in FY20, on $245m of revenues, and a loss of $39m in Q121, on revenues of $58m.
- Its latest platform, Converge, sounds forward thinking and ambitious, but hasn't won analysts over yet.
- If the company can take control of its losses - and ~$900m of cash available will help - and maintain its technology and first mover advantage - it ought to succeed, but it may be 12-18 months before we see genuine share price accretion.
For further details see:
American Well Corp.: A Buy Based On Long-Term Promise As Telemedicine Market Bottoms Out