Why Teladoc Health Stock Is Jumping Today
Shares of Teladoc Health (NYSE: TDOC) were jumping 2.2% as of 10:53 a.m. ET on Thursday after rising as much as 4.8% earlier in the day. The gain came on news that Amazon (NASDAQ: AMZN) plans to shut down its rival telehealth service, Amazon Care, by the end of 2022.
An internal memo written by Amazon Health Services lead Neil Lindsay revealed that the decision to close Amazon Care came after months of deliberations. Lindsay wrote that the company ultimately "determined that Amazon Care isn't the right long-term solution for our enterprise customers." He added that it wasn't "a complete enough offering for the large enterprise customers we have been targeting, and wasn't going to work long-term."
One of the frequent knocks against Teladoc is that it faces intensifying competition. Amazon's entrance into the telehealth market in 2021 with the nationwide launch of Amazon Care served as a prime example cited by critics.
Source Fool.com
