Why Teladoc Health Is Risky to Own
Teladoc Health (NYSE: TDOC) operates a virtual healthcare service, delivered primarily through telephone and videoconferencing. Users receive medical opinions, treatment instructions, on-demand remote care, mental health support, and other medical services from the comfort of their own homes.
The company has posted excellent revenue growth figures, and the health stock has accordingly appreciated 167% since its July 2015 initial public offering, outpacing the S&P by 116 percentage points. However, it has been a bumpy ride for shareholders. The stock's 1.9 beta indicates high volatility, which is apparent when looking at the price chart. Teladoc's stock debuted around $30 per share, and fell to as low as $10 in 2016, then climbed above $86 in September 2018. A terrible Q4 2018 sent it plummeting to $44, but 2019 has allowed it to claw back to $79.
Telehealth and virtual care are viewed by many analysts and leaders in the healthcare sector as emerging solutions that will drive efficiency and reduce overall costs. Medical professionals can see more patients and reduce their administrative burden.
Source Fool.com
