Why Is Everyone Talking About Teladoc Stock?

When Teledoc Health (NYSE: TDOC) announced an upcoming merger with Livongo Health in August, the healthcare industry went a little crazy. People called the deal everything from a waste of shareholder money (because of the stratospheric valuation) to the future of healthcare, because of the combination of virtual primary care and chronic condition management. Now that each company's shareholders have sealed the deal, it's time to find out why everyone is still talking about Teladoc, and whether the combined entity is a worthy investment.

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Teladoc offers virtual doctor visits and focuses on signing up health insurers and healthcare systems (think hospitals, clinics, and doctors offices) as clients. The company was in the right place at the right time during the pandemic, growing year-over-year revenue 85% and 111% in the second and third quarters of 2020, respectively. Similarly, Livongo's chronic disease management services were tailor-made for a pandemic that prevented people from making traditional office visits to their doctors. For its part, Livongo grew sales 125% and 126% in the second and third quarters. That's a lot of growth coming together.

Source Fool.com