The Teladoc stock price has plummeted to a record low as investors reflected on the company’s weak earnings. TDOC, the second-biggest Ark Innovation Fund constituent, crashed by more than 36% in extended hours. It fell to a low of $35.37, bringing its market cap to less than $6 billion. This makes it one of the biggest tech bubble stock to burst recently.
TDOC downfall explained
Teladoc has had a spectacular rise and fall. The company’s stock jumped from an all-time high $308 in February 2021 to today’s $35. The initial rally happened as many people use its digital products for their healthcare. However, the stock has crashed in the past few months as investors dump companies that did well during the pandemic. Others that have fallen out of favour include Netflix, Zoom Video, and Roku.
Another interesting fact about Teladoc is its acquisition of Livongo Health. In 2020, the company bought Livongo for over $18.5 billion. The deal created a company that was then valued at over $35 billion. Today, the combined company is worth less than $6 billion, making it one of the worst mergers and acquisitions of all time.
The Teladoc stock price crashed hard after the company published weak earnings and forward guidance. Its revenue for the quarter was $567 million, about 24.6% above the same quarter in 2021. This was a $3.2 million miss. Its loss per share was 44 cents. The firm expects that the company’s revenue will be between $580 million and $600 million, which was lower than expected. It also expects that it will have between 54 million and 55 million paid members.
Teladoc stock price forecast
Before this week’s results, the Teladoc stock price had dropped by over 82% from its all-time high. Now, going by its extended hours trading, the stock will have fallen by almost 90% from its high. The four-hour chart shows that the TDOC stock price managed to move below the important support level at $50. It also crashed below all moving averages while the Average True Range (ATR) has risen. The MACD and other oscillators have also slipped.
Therefore, there is a likelihood that the Teladoc share price will keep falling as holders dump the stock. The next key level to watch will be at $25.