Amazon.com Inc., the e-commerce behemoth, abandoned its telemedicine initiative last week. Teladoc Health Inc. (NYSE: TDOC), the digital health sector leader, sees this as a chance to further expand its position.
Amazon Care’s remote healthcare platform was released in 2021, and several Wall Street analysts referred to it as a major challenger to Teladoc Health Inc. (TDOC) at the time. The reality is that Amazon has expertise in digital technologies as well as vast resources for project creation and competitiveness.
However, according to Amazon’s health division management, the Amazon Care project will be closed until the end of 2022. According to the firm, continuing Amazon Care is not the best long-term choice for corporate clients since the service cannot deliver a complete and comprehensive offering to its consumers.
Because even Amazon is not ready to enter the struggle at this level, Amazon’s choice to cancel the potential project may indirectly signal Teladoc Health’s strong position in the field of telemedicine. Teladoc Health Inc. (TDOC) already has a robust virtual care service, and its clientele includes more than half of the Fortune 500.
TDOC stock is presently trading roughly 80% below its 52-week high, after spiking during the epidemic. Investors scrutinized the company’s quarterly data and were dissatisfied with the dynamics of the fall in revenue and visitors.
This drop, however, is mostly owing to a tough comparison with epidemic quarters, when telemedicine was the only means to receive care. Teladoc Health Inc. (TDOC) is expanding its offerings and attracting new customers to the ecosystem. The departure of a potentially threatening rival from the market can help the company’s competitive standing.
TDOC stock has been down -2.43% in the past week and -9.83% in the last month. During the previous quarter, this company’s stock fell by -4.04%. The stock has dropped -54.62% in the previous six months and -77.32% year to date. This stock’s year-to-date (YTD) price performance is at -65.04% at the time of writing.