Why Teladoc Health Stock Rose More Than 7% on Wednesday
Shares of Teladoc Health (NYSE: TDOC), a bellwether telehealth company, rose more than 7% this morning. The stock isn't moving in response to relevant news about the underlying business or the telehealth industry because there is none. The stock was still up 6.95% as of 11:18 a.m. ET on Wednesday.
Teladoc Health was a stock market darling that could do no wrong during the pandemic's early days. Now that most of us can see our doctors in person again, the demand for telehealth services has decelerated. When the company reported first-quarter results this April, management had to walk back the 2022 revenue guidance it had provided just three months earlier. Instead of a range of $2.55 billion to $2.65 billion, the company now expects total revenue to land in a range between $2.4 billion and $2.5 billion.
The midpoint of the revised revenue expectation represents a 20.5% year-over-year gain. That isn't bad, but it doesn't compare well to the whopping 86% gain reported in 2021.
Source Fool.com
