Top 5 Tech and Automation Stocks in Cathie Wood’s Portfolio

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

Ark Investment’s Stake Value: $2.1 billion

Percent of 13F Portfolio: 5.01%

Number of Hedge Fund Holders: 40

Teladoc Health, Inc. (NYSE:TDOC) is a New York-based healthcare company that provides B2B solutions to clinics and other healthcare providers. The company aims to automate the healthcare system. Stakes worth $2.83 billion are invested in Teladoc Health, Inc. (NYSE:TDOC) by 40 hedge funds as of the end of September quarter of 2021, as tracked by Insider Monkey.

On December 02, 2021, Baird lowered its price target on Teladoc Health, Inc. (NYSE:TDOC) to $110 from $125 and continued a “Neutral” rating on the stock.

Ark Investment Management held 16.5 million shares in Teladoc Health, Inc. (NYSE:TDOC), valued at $2.58 billion in the third quarter of 2021. Ark Investment Management is also the leading hedge fund investor in Teladoc Health, Inc. (NYSE:TDOC).

Here is what Luca Capital has to say about Teladoc Health, Inc.  in its Q3 2021 investor letter:

“As bullish as we are on the future of telemedicine though, we acquiesce that it can be difficult to build a durable moat. Although telemedicine is very scalable and an easy sell (everyone is a potential customer), the service itself is a commodity with little pricing power and low switching costs. However, scale is a significant advantage as a larger network of providers confers lower connection times and wider coverage. In addition, different areas of the country have varying access to care at any given time, but since regulations now allow providers to see patients across all states, we can better match doctors with patients under a national network, similar to “load balancing” in computing. Since Teladoc is international too, there also exists an opportunity to see patients across international borders. These are just a handful of reasons why we do not believe off-the-shelf consumer products like Zoom or Twilio will eventually replace the core telemedicine providers. They’re not integrated, not on-demand, limited to local physician supply, not accessible at the point-of-care via carts or other hospital equipment, and there’s nothing like Livongo to give the providers a continuous picture of patient health. Teladoc also allows whitelabelling, which enables health systems to take advantage of Teladoc’s additional provider supply while retaining the brand their patients have come to know and trust. However, while this incentivizes health systems to go with specialized platforms like Teladoc or Amwell, it’s making it more difficult for end-consumers to differentiate the major telemedicine providers at the product-level.”

You can also take a look at 10 Favorite Stocks of Cathie Wood and Ken Fisher and Top 10 Stock Picks of Paul Singer.

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