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Amazon Care Expansion Sends Teledoc Lower

Published 17/03/2021, 18:23
© Reuters.
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By Christiana Sciaudone

Investing.com --  Teladoc (NYSE:TDOC) slumped 5.6% after Amazon (NASDAQ:AMZN) said it would start providing its on-demand healthcare services this summer to outside companies.

Amazon Care, started 18 months ago for the company's employees in Washington state, allows medical professionals to connect via chat or video, and will go nationwide starting this summer. The program also has a home-visit program, which will expand to Washington, D.C., Baltimore and other cities in coming months, the company said in a statement. 

Shares of Teledoc are down more than 35% since hitting a record last month, dropping after it reported its worst loss since going public in 2015. The loss per share of $3.07 compared to analyst estimates for a loss of 26 cents, according to data compiled by Investing.com.

Still, analysts are optimistic: The stock has no sell ratings, eight holds and 13 buys, according to data compiled by Investing.com.

In November, Amazon said it was getting into the mail-order pharmacy business, prompting a sell-off in drug store companies from the traditional players like CVS Health Corp (NYSE:CVS) to newcomers like Goodrx Holdings Inc (NASDAQ:GDRX).    



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