While Ark Innovation (ARKK) has performed horrible in the last year and since the peak of covid tech pull forward, Cathie Wood's firm has a strong research background. The Teladoc Health (NYSE:TDOC) warning was a major shock to the market, but Ark Invest doubling down on the stock is promising for the long-term investment picture in the telehealth provider. My investment thesis remains tepidly Bullish here following the destruction of the stock.
Dismal Guidance
Teladoc collapsed to levels not seen since long before COVID-19 pulled forward demand for telehealth services. The virus was supposed to revolutionize the demand equation for telemedicine making the online doctor visits part of the fabric of the healthcare system.
The stock fell as Teladoc cut guidance for 2022 and wrote off a substantial portion of the investment in Livongo Health back in 2020. Investors found out an important lesson about moats and a rush of investments into a hot sector.
The telehealth provider reported Q1'22 revenue of $565 million for growth of nearly 25%. Teladoc missed analysts targets by a minimal $3 million, but the company slashed 2022 revenue guidance to $2.45 billion at the midpoint, far below consensus estimates of $2.58 billion.
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