Is Teladoc Oversold? (TDOC) A combination of weaker-than-expected earnings and […]
Is TDOC dead?
February 20, 2024
Teladoc Health, once celebrated as a pandemic darling, has seen its share of market skepticism, as shares trade -25% below levels from a year ago.
LikeFolio data suggests this pull-back may present an opportunity for long-term investors -- especially considering the underlying growth of consumer adoption of telehealth services at large:

Digging deeper, Teladoc's strategic moves and operational metrics may hint at a company poised for a rebound.
Here’s what we’re watching…
- BetterHelp's Growing Popularity: BetterHelp, a cornerstone of Teladoc's portfolio, recorded a surge in mentions to kick off the new year. This is a nice nod to consumer engagement and future growth.

- Website Traffic: An impressive ~40% increase in year-over-year website visits underscores a sustained (and building) interest in Teladoc's offerings.

Market Response and Insights:
Despite a lukewarm response to Q3 earnings (weak guidance), we spotted some room for optimism:
- BetterHelp, Teladoc Health's online mental health subsidiary, surpassed the $1 billion revenue mark and is now shifting gears towards a balanced growth strategy. This pivot emphasizes profitable expansion with a keen eye on maintaining stable customer acquisition costs and achieving margin improvements. Such a strategy is crucial in the densely populated online mental health sector, where differentiation and financial sustainability are key to long-term success.
- Teladoc has experienced significant growth in chronic care program enrollment (more than 1.1 million active users), reflecting a growing consumer preference for accessible, continuous care solutions. Think diabetes, hypertension, weight management.
- Lastly, Teladoc Health's ability to capture market share from competitors highlights its competitive edge -- the company noted it added 4 million members to its virtual care program through competitive takeaways. This is a nice nod to marketshare gains.
Bottom Line
If Teladoc can continue to make improvements to boost its bottom line, LikeFolio metrics support a bet to the upside.
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