Feb 28, 2020 - Health
Teladoc's coronavirus stock bump
Fears about the coronavirus haven't shattered every stock. Look at the telehealth firm Teladoc.
Driving the news: Teladoc's stock price has soared 19% this week and is now valued at almost $10 billion, because apparently Wall Street believes we will only see doctors on our iPads or on the phone as we avoid the outside world.
Reality check: Teladoc is getting more people to use digital checkups, but the company is not remotely close to turning a profit.
- Teladoc lost about $100 million in 2019, which was roughly the same loss as 2018.
- Teladoc is still spending 20% of its revenue on advertising and marketing.
- Teladoc has had major accounting problems.
- And there are still concerns telehealth visits don't save money and instead are precursors to in-person clinic visits.