LifeMD, Inc. (LFMD): A Bull Case Theory

We came across a bullish thesis on LifeMD, Inc. (LFMD) on Twitter by Cluseau Investments. In this article, we will summarize the bulls’ thesis on LFMD. LifeMD, Inc. (LFMD)’s share was trading at $4.83 as of March 6^th. LFMD’s forward P/E was 20.96 according to Yahoo Finance.

A telehealth professional in a lab coat wearing a headset and talking to a patient through a tablet.

LifeMD (LFMD) is a telehealth company with a distinct model that requires patients to meet with a doctor rather than simply filling out an online form, setting it apart from competitors like Hims (HIMS). The company has also integrated its own affiliated pharmacy, strengthening its control over the customer experience. LifeMD is approaching breakeven profitability while investing heavily in customer acquisition, spending $26 million per quarter on marketing. Despite this expenditure, its underlying business economics are strong, with an adjusted income of $70 million when excluding marketing costs. Given the company’s model, where customer relationships are more persistent due to required doctor interactions, marketing can be viewed as an upfront investment in long-term cash flows. If customer payback takes approximately 24 months, the spending is justified. Additionally, LifeMD owns Work Simpli, a PDF signing application that presents a potential asset sale opportunity. With a $244 million market cap and a sticky customer base, the company is positioned for long-term value creation. While near-term earnings will be impacted by the discontinuation of GLP-1 sales, LifeMD’s core business remains intact, and its 25% insider ownership reflects management’s confidence in its future growth trajectory.

LifeMD, Inc. (LFMD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held LFMD at the end of the third quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of LFMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LFMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.