Why Teladoc’s Growth Story Is Just Getting Started
Most industries have been hit hard by the ongoing crisis caused by the COVID-19 pandemic. For instance, the travel industry is struggling, and many travel companies will continue to face severe headwinds for the foreseeable future.
But other businesses are doing just fine, even flourishing amid the social distancing measures. The telehealth industry is an excellent example of this, and among the companies in this space, Teladoc (NYSE: TDOC) is one of the most prominent. Year to date, shares of this healthcare company are up by 93.1%, but there are good reasons to think Teladoc still has a lot of growth left in its engine.
Teladoc generates revenue in two ways. First, the company charges per-visit fees for customers who use its services. Second, Teladoc charges fees to insurance companies that offer telehealth services to their clients as part of their policies. Obviously, the more insurance companies Teladoc can get on board, the better it is for its bottom line. And given recent events, it seems very likely that more and more insurance companies will look to offer telehealth services to their clients.
Source Fool.com
