Posted 2/21/2024, 4:55:00 PM
Teladoc Stock Plummets 95% as Growth Stalls Despite Massive Livongo Acquisition
- Teladoc stock has plummeted 95% from its all-time high 3 years ago due to decelerating revenue growth over the past 11 quarters
- Teladoc acquired Livongo in an $18.5B deal to accelerate growth, but revenue is now growing less than 4% organically
- Usage and visit numbers are declining despite an expanding potential customer base
- Losses are narrowing and margins are improving, with positive free cash flow and adjusted EBITDA
- The stock valuation is reasonable at 7x forward adjusted EBITDA, but growth needs to resume for investor confidence to return