2024-05-02 16:00:00 ET
Summary
- Teladoc continues to report declining memberships and worsening profitability metrics, with it remaining to be seen if the downtrend may persist as market competition intensifies.
- Part of the headwinds may also be attributed to slowing demand for telehealth services as more patients return to in-person care, as reported by UNH.
- Combined with the cash drag reported by multiple telehealth providers, we can understand why UNH has opted to wind down its telehealth business.
- While TDOC continues to guide for growing FCF generation, its long-term prospects remain uncertain with the stock's valuations similarly discounted compared to its newly profitable peer, HIMS.
- With no bullish support, the stock increasingly shorted, and insider selling intensifying, TDOC's reversal remains speculative.
We previously covered Teladoc ( TDOC ) in February 2024, discussing the troubling signs of declining memberships and worsening profitability in FQ4'23, with it remaining to be seen if the downtrend might persist as market competition intensified....
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Teladoc: Even UnitedHealth Is Turning Its Back On Telehealth