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Hype Asset of the Day | August 10th, 2022





Teladoc Health, Inc. (NYSE: TDOC)

Teladoc Health, Inc. is a multinational telemedicine and virtual healthcare company that provides telehealth, medical opinions, AI and analytics, telehealth devices and licensable platform services. The company has its headquarters in New York State, USA and was founded in 2002. Despite the fact that things are slowly returning to normal post the pandemic, Teladoc has seen a significant increase in demand for telehealth services and remains competitive today. Having seen an increase in hype by 71% over the last day, investors were prompted to wonder what makes the stock gain so much popularity. Currently, shares of Teladoc Health trade at $37.25.




Positive Hype

There are numerous reasons that Teladoc has come to gain this much positive hype, here are some of them.


  • In Q2, Teladoc saw an increase of 2.3 million subscribers to reach 56.6 million paid members and made an average of $2.60 in revenue per subscriber, up from $2.52 in the prior quarter and $2.31 in the prior year.


  • Furthermore, its rate of service utilization by subscribers also increased, reaching 24%. Paid memberships also totalled 56.6 million as of the end of the period and were up 9% year over year.


  • Even with the economy returning to normal, Teladoc has been growing its virtual visits totalled about 4.7 million for the period ended June 30 and are up 28% year over year.


  • For the three-month period ended June 30, Teladoc's sales totalled $592.4 million and rose 18% year over year. Although there were losses, much of that was the result of non-cash goodwill impairment charges related to its purchase of Livongo Health.


  • Teladoc's gross margins have hit record highs and are up by around 70% which put the company in an excellent position to cover its operating expenses as it grows and expands its business.


  • The company also has $883 million in cash and just generated $47 million in free cash flow last quarter.


  • According to the company's CEO, Jason Gorevic, Teladoc has "twice as many multimillion-dollar deals in the pipeline as we did, as we entered the third quarter last year."


  • Teladoc expects total visits of roughly 19 million in 2022, resulting in revenue growth of about 21% at the midpoint of its guidance.

Negative Hype

No investment is free from negatives, and Teladoc isn’t the exception. It is important to consider the downsides of an investment before making it, here are a few of them.


  • While its Q2 revenue rose by 18% year over year to reach $592.4 million, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by a somewhat shocking 30%.


  • The company also clarified its non-adjusted EBITDA guidance, saying that it now expects full-year performance to fall near the lower end of the range, which runs from a loss of $41 million to a gain of $8 million.


  • Whereas before it held that its net earnings per share (EPS) would be as low as a loss of $43.50 per share, it now expects a loss of between $61 and $62 per share.


Conclusion

With excellent second-quarter results and having outperformed its competitors, T-Mobile is doing very well for itself. However, there are metrics where it hasn’t performed the best and drawbacks too. Given its most recent activities, it seems like the pros outweigh the cons and imply that it’s worth considering taking a position in T-Mobile immediately.





HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.




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