Today I feel sick. This is why I need to see the doctor.

I felt worse thinking about it. I imagined the options that I had.

First, try your best to make an appointment with your doctor who has many or possibly hundreds of patients similar to you. You can also go to the hospital and waste your time in waiting, but ultimately spend more money on the help you need.

All of these options require you to spend your precious time. It is impossible to stop, borrow, or earn. Anyone who cares about this resource and wants to be able to visit the doctor quickly will look for it. It is actually possible.

Online consultations are possible in the age of IT. This is currently possible via Zoom and Skype. However, the future will allow you to consult your doctor online. This will mean that you will be able to spend less time. You will also be able to stay at home, which will help you avoid spreading your disease or getting new ones.

Who offers such services? Teladoc Health (NYSE : TDOC) is one of the most well-known public companies in this sector. This article will explain what the company is and who has invested billions in it.

Teladoc Health, Inc.

Teladoc Health, Inc., a transnational telemedicine company, has its headquarters in Purchase, NY, USA. It was established in 2002 by Dr. G. Byron Brooks, a doctor, and Michael Gorton, a businessman.

Access to licensed medical professionals is provided by the company. Teladoc spends its monthly subscriptions to companies that allow employees access to medical services at a discounted rate.

Companies can make a profit from contracts with Teladoc

This cooperation is beneficial for enterprises because employees can visit the doctor during their workdays if they experience symptoms of disease. The employee and the company save money if the treatment doesn't take place during workdays.

Teladoc was the first to offer online medical services using a revolutionary technology in 2002. It was able to build a client base of approximately 1 million people by 2007, which included employees from the largest US companies.

We will always have enough supply if there is demand. Teladoc was faced with competition and decided to take on them by engulfing and expanding its market share, as well as stepping outside of the USA.

Teladoc IPO lobbying

The company went public in 2015 and became the first public telemedicine company on the NYSE. The shares were initially traded at 30 USD per share, but then reached a high of 35 USD before falling into a long decline that ended in March 2016.

A draft Texas bill that would have prohibited online medical services for patients who had not seen a doctor in person was the reason behind the decline. The number of Telados patients in Texas had surpassed 2 million by that point. Investors began to doubt the company's bright future, which had a negative impact on the share price.

Telados didn't pass the draft bill unnoticed. They went to court claiming that it violated antimonopoly laws. Simultaneously, Telados lobbied its interests. Telados eventually dropped the claim. However, the bill was amended to allow remote consultations and avoid visits to the doctor.
Telados now offers its services in 130 countries around the world, and has 40 million subscribers.

Influence of COVID-19 in Teladoc

During the pandemic, when quarantine was enforced everywhere and doctors were dangerously afraid to visit, investors paid special attention to the company. The company's quarterly revenue grew from 150 to 522 millions USD and the share price from 80 to 300 USD. The share price began to fall after the agitations subsided.

Investors then noticed that the company's losses had risen 10 times in 2020. Experts added fuel to the fire, decreasing the company's rating.

The Telados target share price is still 35% lower than the market price, and amounts to 135 US dollars. Livongo Health was purchased for 18.5 billion US dollars, resulting in a sharp rise in losses.

Teladoc buys Livongo Health

Online consultations are available at Livongo Health for people living with chronic illnesses. Because most Livongo patients were elderly, the demand for their services increased during the pandemic. This is because they prefer online consultations to those who live in person to reduce the chance of contracting COVID-19.

The first company doubled its size after the merger of Teladoc & Livongo. The new company is still adapting and spending huge amounts of money to do this. However, Teladoc's net loss has decreased five times to 84 millions USD. Teladoc is confident that it will soon be able to make a profit.

Management predicts that revenue growth will slow down.

Teladoc shares fell because of another reason. Although the pandemic is now under control, management predicts that revenue growth will slow down in the next quarters. This is because some clients will be returning to offline services. There will still be some who prefer to visit online.

Revenue growth will slow down, but not stop completely. The company previously reported revenue growth of 140-150%. Now it reports an 80% increase, which is still quite impressive.

Teladoc launches the Primary360 program

It is important to note that there were no expert recommendations for selling Teladoc shares. One argument was that Teladoc services mean the patient is constantly seeing different doctors. This is not good as the patient must tell their story every step of the way. Doctors and patients don't form long-lasting trusting relationships. Patients would prefer to consult doctors who have helped them before.

Teladoc is aware of this problem and has just launched the Primary360 program. This allows patients to choose the doctor they wish to see and, if they are busy, can book an appointment. Teladoc has made it so that patients don't have to keep changing doctors.

Who buys Teladoc shares?

As I mentioned, there are no publications that recommend selling Teladoc shares. However, articles that suggest buying shares are plentiful. Check out Yahoo Finance's news feed. Teladoc is a great company for long-term investments.

Cathie Wood, a well-known investor in Teladoc shares, also purchases Teladoc shares. She bought 476,000 shares of Teladoc for more than 50 million dollars in November 2021. She owns 17 million shares total of the company worth 2.7 billion dollars.

Teladoc, which accounts for 5% of the portfolio of Cathie Wood, is second after Tesla (NASDAQ TSLA).

This is a guideline on the major market players that you can find.

Tech analysis of Teladoc shares

Let's now look at the chart for the company.

The company's future growth and development is still possible, but the picture is not encouraging. It is difficult to see any confirmations in the chart.

First, Teladoc quotes are trading below the 200-days Moving average, which indicates a downtrend. The company's value has fallen by 200 USD since its all-time peak. This is a drop of over 60% which is very concerning.

The situation can only be summed up in one conclusion. The price already includes all negative events that aren't too common. This may be why Cathie Wood purchases Teladoc shares so frequently.

The shares were last traded at 100 USD in 2020 at the start of the year. Before the crisis. Teladoc shares are now oversold because the company's revenue is now 3 times greater than it was in 2020.

Even in these circumstances, I do not recommend that you rush to buy shares. Cathie Wood is able to afford to purchase shares at a decline and does so actively, decreasing average entry prices. We aim to buy the shares so that any subsequent declines would be minimal. We will wait to see if there are any signs of recovery. Although we won't be able to catch the point where the chart reverses, we can minimize the chance of a drawdown.

A possible reversal signal would be a breakaway from the resistance level at 120 USD. This is the weakest signal. The price must rise above 160 USD. This will occur in conjunction with the 200-days MA. It signals the start of an uptrend. This is the second strong signal to purchase Teladoc shares.

You can still buy shares at the lowest price, but you should consider buying them at the support level of 90 USD. This is the third and most risky, but potentially the most profitable, way to buy Teladoc shares.

Bottom line

As I was writing this article I thought back to the invention of a smart bathroom for collecting medical tests. I also thought about AI that diagnoses based on symptoms. Teladoc already uses AI - they just need to add toilets in their network to send data to the company. The company would then make a diagnosis based on the received data and inform the patient. This is our future.

The patient will be informed about upcoming diseases, taken measures to avoid complications, and given the opportunity to take preventative actions. The company will also make money.

Teladoc will benefit if this is the future. This company is also likely to create such schemes. Cathie Wood's billions on these shares seem like a smart investment.

Although the idea is long-term, there are good chances of making a profit.

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