What happened
Shares of Teladoc Health (TDOC -3.35%) leapt 8% on Monday, furthering the healthcare technology stock's torrid gains so far this year.
So what
Several factors likely contributed to Teladoc's gains on Monday. The telehealth services provider delivered a strong first quarter at the end of April, with revenue surging 41% year over year to $180.8 million. Analysts ramped up their full-year growth projections for Teladoc in the days that followed.
Then on May 6, Teladoc released the results of a study highlighting the widespread negative impact of the coronavirus crisis on people's mental health. With the adoption of virtual care services rising, Teladoc could see increased demand for its services from patients seeking mental health treatment.
Teladoc Health is a leader in virtual health services. Image source: Getty Images.
And on May 8, the Food and Drug Administration granted emergency authorization for a new at-home saliva collection kit that can be used to test for the presence of coronavirus. Patients can use the kits to collect their own saliva samples at home under the supervision of a healthcare professional. Rutgers University -- which developed the kit in partnership with Accurate Diagnostic Labs and Spectrum Solutions -- said that the test is as accurate as tests that require deep -- and highly uncomfortable -- nasal swabs. Teladoc and other virtual care providers could, therefore, see a further increase in demand, as their telehealth platforms could help to facilitate the new testing process.
Now what
With multiple growth drivers fueling its expansion, Teladoc is likely to remain one of the biggest beneficiaries of the acceleration in the trend toward virtual healthcare services brought about by the COVID-19 crisis.
