Telemedicine specialist Teladoc Health (NYSE:TDOC) just disclosed that the company is removing some barriers to benefits for selected members. That’s great news for the company’s clients and patients. However, TDOC stock hasn’t quite perked up in response to the press release. Shares are up just under 1% so far today.
As you may recall, Teladoc Health became a celebrity on Wall Street during the initial spread of Covid-19 in 2020. Suddenly, telehealth was a hot topic and traders were excited to capitalize on this growing market.
Lately, though, telemedicine stocks have been cooling off. Many people have become confident to see doctors in-person again. That’s not necessarily great news for Teladoc as a business. Nonetheless, the company is committed to providing essential services virtually to as many patients as possible.
To that end, Teladoc jsut announced that it’s expanding its primary care offerings for some of its members. Specifically, select members of its Primary360 program will “now receive health plan in-network referrals and care coordination support; free, same-day medication delivery from Capsule, the leading national digital pharmacy; and in-home, on-demand phlebotomy with Scarlet Health.”
What’s Happening with TDOC Stock?
Sometimes, traders’ responses can be ho-hum, even when a company is striving to provide clients with the best possible service. This appears to be the case today, as TDOC stock mostly stays between $38 and $41 per share. This represents little movement compared to yesterday’s closing price.
Why the muted reaction? It’s hard to gauge what traders are thinking at any given moment, but there might be one explanation. Possibly, investors are still considering how the company’s benefits expansion will impact the bottom line.
Still, Kelly Bliss, President of U.S. Group Health at Teladoc Health, sees “exciting momentum with Primary360.” Bliss noted the expansion’s potential for “commercial success along with consumer adoption, driven by new capabilities” as patients can now accrue more benefits and features of Primary360.
Overall, today’s announcement should be viewed as positive news. Perhaps in due time, Wall Street will come to appreciate this timely extension of benefits. Irrespective of TDOC stock, it’s just what the doctor ordered.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.