Teledoc (NYSE:TDOC) stock is taking a beating on Wednesday following news that Amazon (NASDAQ:AMZN) is planning its own telehealth coverage.
While there’s been no official news from Amazon, recent reports claim that the company is looking to offer healthcare coverage to other companies. One such source claimed that it was in talks with Zillow (NASDAQ:ZG) to offer its coverage to the company’s employees.
According to these rumors, Amazon will offer both online and in-person visits to workers near the company’s headquarters. Those further away will have to rely on just the online doctor visits.
This would have Amazon stepping into Teledoc’s territory, which is something no company wants to see. AMZN has shown itself to be a horrible rival for competitors by running them out of business. It’s expanding business will likely see more companies fall to the e-commerce giant in the future.
Here’s what Amazon had to say about the rumors when asked by Business Insider.
“We do not comment on rumor or speculation. Amazon Care is a healthcare benefit pilot for Amazon employees in the state of Washington.”
TDOC stock falling on reports that Amazon is making a push into the telehealth market comes as no surprise. Several major pharmacy companies saw similar blows to their stocks when the company announced the launch of Amazon Pharmacy last month.
Investors will have to wait to learn more about AMZN’s potential telehealth plans, but it isn’t looking good for TDOC shareholders.
TDOC stock was down 5.1% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
