Teladoc News: Why TDOC Stock Is Taking a 3% Hit Today

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Teladoc (NYSE:TDOC) news for Monday includes TDOC stock continuing to fall after its merger with Livongo.

teladoc health logo on a mobile phone screen

Source: Piotr Swat / Shutterstock.com

Teladoc completed its merger with Livongo on Friday and the company’s stock quickly began to fall following the news. This saw shares of TDOC stock plummet 9% from its Thursday closing price of $215.99 to its Friday closing price of $196.46.

The merger between the two companies saw holders of Livongo stock receiving a mix of cash and TDOC stock for their shares. This came to .592 shares of TDOC stock and $11.33 in cash for each share of LVGO stock that they held. LVGO stock is no longer trading after the merger.

The drop to TDOC stock today could represent an opportunity for investors. While it’s true that shares are down after the merger, there’s plenty of reason to believes that they could bounce back.

First off, Teladoc’s recent earnings report saw its bring in revenue of $288.8 million. That’s a 109% increase from the same period of the year prior. The company is also looking for 2020 revenue to come in above $1 billion. These signs point toward continued growth despite widening losses.

It’s also worth noting that the novel coronavirus has been good news for Teladoc. That makes sense considering its focus is on offering remote healthcare visits with doctors. With the pandemic still in effect, it’s likely that TDOC stock still has room to grow thanks to the coronavirus.

TDOC stock was down 3.4% as of noon Monday but is up 127.8% since the start of the year.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/teladoc-news-hits-tdoc-stock/.

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