Is Teladoc Health Inc. (TDOC) Stock a Good Investment?

Is Teladoc Health Inc. (TDOC) may not appear to be a millionaire creator right now. Investors have been let down by the company's billion dollar goodwill impairment costs and slowing sales growth.
SHEUNG WAN, Hong Kong - Aug. 31, 2022 - PRLog -- These factors have pushed the prospect of profit further away. As a result, the stock has dropped more than 60% this year.

However, TDOC's narrative is far from done. During its earnings release on July 27, the corporation also provided a few hints that growth is on the way. Is this to say that if you buy now, this undervalued stock may help you become a millionaire?

TDOC took a $6.6 billion noncash goodwill impairment charge in the first quarter. This suggests that the corporation overpaid for Livongo Health in 2020.

TDOC then recorded a $3 billion noncash goodwill impairment charge in the second quarter. This is because the stock had fallen since the company's first quarter results release. At the same time, sales growth dropped from 25% to 18% in the preceding quarter, compared to triple digit growth in the early days of the pandemic.

According to TDOC, the present economic situation is dragging on the company. Employers contemplating TDOC programs for their employees are delaying their decision for signing up, in turn delaying income. Another impediment is the strengthening of the dollar, which reduces the value of income from overseas clients.

TDOC reported a net loss per share of $19.22 in the second quarter, mostly owing to the impairment charge. TDOC has drifted farther away from profitability, with a loss per share of $0.07 in the fourth quarter of last year.

Let us now go on to the positive news. TDOC is making strides in two key areas that might help it generate revenue over time. The number of paid members in the United States and revenue per member. Over the last year, both have consistently increased from quarter to quarter. In the second quarter, they increased 8.8% and 12.6% year on year, respectively.

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