Shares of Teladoc Health Inc. (NYSE: TDOC), a leading provider of virtual healthcare services, surged 6.6% on Wednesday, outperforming the broader market amid growing optimism about the company's growth prospects.
The rally was fueled by Teladoc's recent collaboration with Amazon.com to expand the availability of its chronic condition management programs. Under the agreement, qualifying Amazon customers can access Teladoc's services for pre-diabetes, diabetes, weight management, and hypertension through Amazon's Health Benefits Program.
Additionally, Teladoc announced plans to acquire Catapult Health, a digital preventive care services provider, for $65 million in cash, with an additional $5 million in performance-based compensation. This acquisition is expected to strengthen Teladoc's comprehensive care solutions by integrating Catapult Health's patient-focused approach to personalized supportive care and at-home testing.
Teladoc's strong performance year-to-date, with a gain of 57.65% as of February 17, 2025, has also contributed to investor enthusiasm. The company ranks among the best-performing healthcare stocks this year, reflecting its market-leading position and the growing demand for virtual healthcare services.
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