TDOC Stock: Why Teladoc Shares Are Sliding Lower Today

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Teladoc (NYSE:TDOC) stock is taking a beating on Wednesday following news that Amazon (NASDAQ:AMZN) is expanding its virtual health services.

The Teladoc (TDOC) logo through a magnifying glass.

Source: Postmodern Studio / Shutterstock.com

The expansion plan is for Amazon Care, the company’s virtual healthcare services for its employees. This service is currently limited to employees in its home state of Washington. However, AMZN says it will bring it to employees in all 50 states this year.

This means that all U.S. Amazon employees will be able to make use of the virtual healthcare visits at no cost. Those living in Washington and near Washington D.C. can also get in-person visits from nurses for a fee, reports CNBC.

It’s no surprise that TDOC stock is falling on news that Amazon is wading further into the virtual healthcare market. While the service isn’t available to the public, this could be a sign that AMZN will directly challenge Teladoc and other virtual healthcare providers in the future.

This isn’t the first time that Amazon announcing healthcare news has been bad for rivals in the industry. The company also launched its online pharmacy late last year. At that time, many traditional pharmacy stocks saw some serious dips.

Amazon Care news isn’t the only thing that’s weighing TDOC stock down lately. Shares have also seen a steady decline as the novel coronavirus pandemic starts to wind down. However, that doesn’t mean investors should just give up on the stock. Teladoc still offers a wealth of services online and likely gained many new users that will stick around once the pandemic is over.

TDOC stock was down 6.3% 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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/tdoc-stock-why-teladoc-shares-are-sliding-lower-today/.

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