1. Teladoc Health, Inc (NYSE:TDOC)
ARK Investment Management’s 13 Portfolio: 5.86%
ARK Investment Management’s Stake Value: $1.40 billion
Number of Hedge Fund Holders: 39
Year-To-Date Share Price Loss : 66.51%
Teladoc Health, Inc (NYSE:TDOC) is Cathie Wood’s second largest holding, with 19.46 million shares worth $1.40 billion, representing 5.86% of her Q1 2022 portfolio. The New York-based firm offers virtual healthcare services. It was a star-performer during Wood’s blockbuster 2020 as the pandemic pushed people towards online platforms. However, the stock has lost 89% from its all-time high in February 2021 where it traded at $293, and is currently priced at $31.89.
Out of all the hedge funds in the database of Insider Monkey, 39 reported bullish bets on Teladoc Health, Inc (NYSE:TDOC) shares at the end of Q4 2021 with an aggregate value of $2.45 billion. This is down from 40 hedge funds a quarter ago.
Argus analyst David Toung on May 5 downgraded Teladoc Health, Inc (NYSE:TDOC) to ‘Hold’ from ‘Buy’, noting that the firm is now paying more to acquire new members, and is facing increased competition in the direct-to-consumer market for behavioral health services. The analyst projects operating losses for the firm in 2022 and 2023 after its disappointing Q1 results showed declining gross and EBITDA margins.
Investment firm RiverPark Funds talked about Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter, stating:
“Teladoc is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).
Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc.”
You can also take a look at 10 Best Cheap Stocks To Buy Now and 10 Best Chinese Stocks To Buy Now
