Does Teladoc's $65 Million Acquisition of Catapult Health Make the Stock a Buy?
Telemedicine specialist Teladoc Health (NYSE: TDOC) has been a terrible investment over the past three years. Once the company's pandemic-fueled business boom cooled down, its revenue and visit growth slowed down considerably while it remained unprofitable.However, Teladoc is trying to turn things around. Recent developments, including a leadership change and the planned acquisition of Catapult Health -- a virtual health provider focusing on preventive care -- are among the moves that it hopes will help it back on the right track. Is that enough to make Teladoc's shares attractive again?Teladoc's acquisition of Catapult Health -- expected to be completed by the end of March -- fits the company's vision of providing customers with a deep portfolio of services. Catapult helps its members with at-home health exams that can uncover conditions they were not aware they had, including prediabetes, which a surprising 33% of the adult population in the U.S. is estimated to have -- though many don't know they do. Catapult follows these exams with virtual visits with a health professional to help develop personalized action plans.Continue reading
Telemedicine specialist Teladoc Health (NYSE: TDOC) has been a terrible investment over the past three years. Once the company's pandemic-fueled business boom cooled down, its revenue and visit growth slowed down considerably while it remained unprofitable.
However, Teladoc is trying to turn things around. Recent developments, including a leadership change and the planned acquisition of Catapult Health -- a virtual health provider focusing on preventive care -- are among the moves that it hopes will help it back on the right track. Is that enough to make Teladoc's shares attractive again?
Teladoc's acquisition of Catapult Health -- expected to be completed by the end of March -- fits the company's vision of providing customers with a deep portfolio of services. Catapult helps its members with at-home health exams that can uncover conditions they were not aware they had, including prediabetes, which a surprising 33% of the adult population in the U.S. is estimated to have -- though many don't know they do. Catapult follows these exams with virtual visits with a health professional to help develop personalized action plans.
