Is Teladoc Health Stock a Buy After Its Spectacular Collapse?
Teladoc Health (NYSE: TDOC) appeared to be on life support Thursday, after reporting results that were far worse than investors had anticipated. The stock had already declined roughly 70% over the past year, as the pandemic-related tailwinds faded and growth of the company's telehealth services slowed to a crawl.
Investors began to wonder if there was any way to resuscitate the digital healthcare specialist, after its first-quarter results drove the stock down by another 46%, now down 90% from its high reached early last year. That leaves investors with a quandary: Is it best to move on, or is there a glimmer of hope for Teladoc Health?
The biggest contributor to Teladoc's stunning fall from grace was a noncash goodwill impairment charge of $6.6 billion. This dates back to the company's acquisition of Livongo in late 2020. Investors will recall that Livongo developed novel, app-based tools to help patients with chronic conditions -- like diabetes -- better manage their disease. By using cutting-edge artificial intelligence and algorithms to provide timely suggestions, patients were able to stay on track between doctor visits.
Source Fool.com
