10 Worst ARK Stocks To Buy According To Short Sellers

8. Teladoc Health, Inc. (NYSE:TDOC)

Short Interest as % of  Shares Outstanding: 17.06%

Number of Hedge Fund Investors In Q2 2024: 35

Ark Invest’s Q2 2024 Stake: $73.1 million

Teladoc Health, Inc. (NYSE:TDOC) is a digital healthcare services provider that enables patients virtual access to healthcare professionals. It was one of the top performing stocks during the coronavirus pandemic, as lock down mandates coupled with a global healthcare crisis left the market wide open for the company. At 2021’s close, Teladoc Health, Inc. (NYSE:TDOC)’s revenue sat at a whopping $2 billion. However, while it was able to grow its market share during the pandemic, growth has slowed since then as Teladoc Health, Inc. (NYSE:TDOC) expected 2024’s revenue to sit at $2.6 billion at the end of its Q1. This marks flat growth over 2023, which in itself marked a small 8% growth over 2022’s figures. Despite long term tailwinds that could see Teladoc Health, Inc. (NYSE:TDOC) benefit from a growth in America’s elderly population, the firm is continuing to face uncertainty. This was apparent during the Q2 earnings call, where the firm refused to provide guidance for its full year. The key drivers of Teladoc Health, Inc. (NYSE:TDOC)’s hypothesis are its ability to expand its member network, rely on technology to ensure patients are matched with the right physicians, expand the kinds of care offered on its platform, and expand its presence globally.

Teladoc Health, Inc. (NYSE:TDOC)’s management shared some positives during the Q2 2024 earnings call:

“We are continuing to see strength in the number of recruitables that we have, right. The recruitables momentum continues. And I would say, that is testament to our product offerings. The fact that we are seeing strength in selling Chronic Care bundles increasingly. If you think about our overall Chronic Care bookings, more than half of it was Chronic Care bundles. The reason I mention this is, if you think about your question around, how are we doing in converting those recruitables into Chronic Care enrollees, we don’t give the actual number in terms of enrollment, but it continues to be strong and increase relative to what you quoted as the enrollment numbers in the Livongo days.

And the reason for that is, if you think about our ability increasingly to sell Chronic Care bundles to clients, what happens when you do that is, you will see enrollees essentially enroll into multiple conditions, use multiple off our programs rather than say one diabetes program, etc., and all of that helps from an enrollment perspective.”