Why Teladoc Health Stock Is Soaring This Week
Shares of Teladoc Health (NYSE: TDOC) were soaring 21.2% this week as of the market close on Thursday, according to data from S&P Global Market Intelligence. The only news from the virtual care company was the addition of new features to its virtual primary care product Primary360. This likely wasn't a big factor in Teladoc's big gains, though.
Instead, the increasing strength of the overall stock market appears to be driving Teladoc's share price higher. This could be causing short-sellers to close their positions in the stock, resulting in a moderate short squeeze.
As of June 15, nearly 26% of Teladoc's float was sold short. Teladoc short-sellers lose money if the stock goes up. This week's bounce for the stock market, with Teladoc going along for the ride, is exactly what short-sellers don't want.
Source Fool.com
