Teladoc stock falls on earnings miss, TDOC stock down 30% after hours

TDOC stock collapses as it reports a disappointing earnings release after Wednesday's close.
Teladoc missed on both top (revenue) and bottom (EPS) lines.
TDOC shares are down nearly 40% this year but much worse from its 2021 high.

Ivan Brian FXStreet

Teladoc kept up its brutal performance this year as the stock fell sharply as it reported earnings after the close on Wednesday. Teladoc was another pandemic beneficiary as the stay-at-home dynamics led to a surge in the use of the service. Traders also saw the benefits of the service which was the perfect setup for lockdown. Retail traders jumped in and stretched the stock to valuation levels that were just unsustainable.

This is now being unwound across the stock market with multiple pandemic beneficiaries returning to levels not seen since early 2020. The most obvious example has probably been Peloton (PTON) and ARK Invest Innovation (ARKK). Teladoc is one of the top holdings in ARKK so more losses are on the cards and we deal with this in a separate report below.

See ARK Innovation (ARKK) latest here

Teladoc (TDOC) stock news: Call the doctor, this stock is dead

So let's get straight to it. The earnings were missed on the top and bottom lines. Earnings per share came in at wait for it -$41.58 versus the -$0.52 estimate. Now, that really is not a comparable figure because the -$41.58 includes a one-off goodwill impairment charge of over $6 billion. That means it adds -$41.11 to the loss meaning excluding that goodwill charge sees an EPS loss of -$0.47 versus the -$0.52 estimate. Revenue also missed coming in at $565.4 million versus the $568.7 million estimate.

Teladoc also gave guidance for the year ahead and it also was lower than previous estimates. Full-year revenue is now expected at $2.45 billion versus $2.58 billion expected. All told a weak set of numbers combined with a disappointing outlook sends the stock down over 30% in after-hours trading. Things are not looking any better this morning with little bounce in evidence and in fact at the time of writing TDOC stock is down 37% from Wednesday's close.

Teladoc (TDOC) stock forecast: No longs left

There is not much to say here, the chart says it all, pump and dumps look better than this! Admittedly this is a weekly chart so it has been more of a long slow painful torture for those long the stock. Surely there cannot be too many longs left now.

TDOC stock is now back to levels from mid to late 2017 and has some hope of stabilizing there given it was a long consolidation phase with reasonable levels of volume, but as we can clearly see markets are prone to stretching like an elastic band before snapping back to equilibrium.

TDOC stock clearly stretched too far on the upside and has now snapped back. It now may stretch too far to the downside given the current bearish overall market and the complete lack of momentum for TDOC stock. We have no good news to offer here. This one is damaged and is to be avoided until management at least turns the earnings around.

TDOC stock chart, weekly

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD holds above 0.7000 ahead of FOMC policy meeting

AUD/USD attracts some dip-buyers near 0.7000 during the Asian session on Tuesday, stalling the previous day's pullback from a one-month high as bets for a November RBA rate hike continue to act as a tailwind for the Aussie. Meanwhile, the US Dollar consolidates gains from the past two days ahead of the crucial two-day FOMC meeting starting later today, further supporting the currency pair.

USD/JPY consolidates above 157.50 as traders await Fed, BoJ meetings

USD/JPY trades above mid-157.00s during the Asian session on Tuesday, looking to build on its recovery from an over one-month low as speculation that the BoJ may hold off on aggressive rate hikes undermines the Japanese Yen. Meanwhile, the US Dollar sits near a one-week high, further supporting the currency pair. Bulls, however, seem hesitant ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday.

Gold trades above $4,000 and a three-month low as focus remains on FOMC

Gold attracts fresh sellers during the Asian session on Tuesday, reversing part of the previous day's modest recovery from a three-month low. US bond yields rebound slightly after the recent decline to a three-week low, helping the US Dollar preserve its gains recorded over the past two days and weighing on the non-yielding bullion. The commodity, however, holds above $4,000 as bears seem hesitant ahead of Wednesday’s FOMC rate decision.

Bitcoin faces $77,000 support test as Fed decision nears

Bitcoin (BTC) is testing key support levels after falling to $79,250 over the weekend, with persistent selling pressure and uncertainty over the Federal Reserve’s (Fed) interest rate decision likely to prolong the top crypto's decline, according to Bitfinex analysts.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.