Stock Analysis

Teladoc Health (NYSE:TDOC) Expands Connected Care Partnerships Amid US Tariff Concerns

NYSE:TDOC
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Teladoc Health (NYSE:TDOC) experienced a 10% decline in share price over the past week, despite announcing significant expansions in its connected care partnerships and pharmacy integration agreements. These developments, including partnerships with Carrot Fertility and Eli Lilly, reflect the company's efforts to enhance its healthcare offerings. However, these announcements occurred amid a volatile market backdrop, with investors bracing for potential U.S. tariff announcements impacting broader market sentiment. Despite these industry advances from Teladoc, market conditions and uncertainties contributed to its overall price movement, as major stock indexes showed gains of about 0.4% to 0.9%, contrasting the broader market's 3% drop.

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NYSE:TDOC Revenue & Expenses Breakdown as at Apr 2025
NYSE:TDOC Revenue & Expenses Breakdown as at Apr 2025

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Over the past year, Teladoc Health's total shareholder return plummeted by 45.85%, underperforming the US Healthcare Services industry, which declined marginally, and the broader US market, which actually showed significant gains. Key factors during this period included the company's earnings challenges, with fourth-quarter revenue down to US$640.49 million from US$660.53 million year-over-year, and a net loss of US$48.41 million. The departure of former CEO Jason Gorevic in April 2024, succeeded by Charles Divita, III, marked a significant leadership change during a time of operational transitions, including the withdrawal of full-year guidance in July 2024.

Despite these hurdles, Teladoc continued expanding its service portfolio with new partnerships in connected care and pharmacy integrations announced in early March 2025. These expansions aimed to broaden their offerings in areas such as digestive health and weight management. However, a class action lawsuit in May 2024 concerning misleading statements related to marketing expenditures added legal challenges to the company’s operation, impacting its share price over the period.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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