What Happened?

Shares of digital medical services platform Teladoc Health (NYSE:TDOC) fell 16.4% in the pre-market session after the company shared poor fourth-quarter numbers: full-year EBITDA guidance missed significantly, and next quarter's sales outlook fell short of Wall Street's estimates. Revenue dropped 3% from last year. However, international sales were a bright spot, growing 10%. Still, it was a weaker quarter for the company.

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What The Market Is Telling Us

Teladoc’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. But moves this big are rare even for Teladoc and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 7 months ago when the stock dropped 19.6% on the news that the company reported weak second-quarter earnings results. Its revenue growth regrettably slowed and missed Wall Street's estimates. Its EPS also fell short as the company recorded a goodwill impairment charge of $790 million. Perhaps the most negative news from the quarter was management retracted its full-year guidance, which is typically a bad sign. Zooming out, we think this was a tough quarter.

Teladoc is up 0.7% since the beginning of the year, but at $9.59 per share, it is still trading 38.5% below its 52-week high of $15.59 from March 2024. Investors who bought $1,000 worth of Teladoc’s shares 5 years ago would now be looking at an investment worth $70.94.

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