Jim Cramer Is Bearish On These 5 Stocks

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

Number of Hedge Fund Holders: 27

Teladoc Health, Inc. (NYSE:TDOC) is a New York-based company that provides virtual healthcare services in the United States and internationally. Jim Cramer is recently bearish on Teladoc Health, Inc. (NYSE:TDOC), and he mentioned the company in his December 22 segment of Mad Money’s Lightning Round:

“I’ve used the product, I like it very much, but it is not a good situation.”

Although Teladoc Health, Inc. (NYSE:TDOC)’s Q3 2022 financial results outperformed on both the top and bottom lines, the company lowered its full-year 2022 revenue outlook to $2.395 billion-$2.41 billion from a prior outlook of $2.4 billion-$2.5 billion and a consensus of $2.41 billion. It is also forecasting a net loss per share of $61.40-$61.10.

On December 23, Truist analyst Jailendra Singh maintained a Hold rating and a $29 price target on Teladoc Health, Inc. (NYSE:TDOC). While investors have inquired about the cause of its 8.5% drop on December 22, which was attributed to weak quarter-to-date trends in BetterHelp Website traffic, the credit card data, app downloads, and MAUs for BetterHelp suggest that the overall trends are not different from what the management indicated in its Q3 earnings call, the analyst told investors in a research note.

According to Insider Monkey’s data, 27 hedge funds were long Teladoc Health, Inc. (NYSE:TDOC) at the end of Q3 2022, compared to 32 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the biggest position holder in the company, with 20.85 million shares worth $528.75 million. 

Greenhaven Road Capital made the following comment about Teladoc Health, Inc. (NYSE:TDOC) in its Q3 2022 investor letter:

“At the end of last year and the beginning of this year, I sold two of our highest multiple holdings and invested in Teladoc Health, Inc. (NYSE:TDOC), believing that swapping out of the highest multiple holdings into a lower multiple holding would provide protection in the event of multiple compression. However, the reality is that the multiple compression on currently loss-making (unprofitable) companies has been severe regardless of starting multiple, and TDOC’s lower relative starting point afforded us far less protection than I expected. We are no longer shareholders today but continue to follow the business and may return someday given its market size, product portfolio, and valuation.”