- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady above 1.1100, Fed rate decision in focus
EUR/USD fluctuates in a tight range above 1.1100 on Wednesday. A broadly weak US Dollar, amid increased bets of an outsized Fed rate cut and a cautiously optimistic market mood, underpins the pair. All eyes remain on the Fed policy verdict.
GBP/USD consolidates CPI-inspired gains near 1.3200
GBP/USD stays in a consolidation phase near 1.3200 after climbing above this level with the first reaction to the UK inflation data for August. Later in the day, the Federal Reserve will announce policy decisions and publish the revised dot-plot.
Gold stays below $2,580 ahead of Fed ruling
Gold holds its ground following Tuesday's pullback but struggles to gather bullish momentum, trading in a narrow channel below $2,580. Investors stay on the sidelines while gearing up for the Federal Reserve's interest rate decision.
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut
The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.