Shares of Teladoc Health (NYSE:TDOC) fell 4.8% on Tuesday, as investors sold so-called stay-at-home stocks.
With new COVID-19 case counts declining, people have begun to look ahead to an eventual end to the coronavirus pandemic. Many investors, in turn, have rotated out of companies that have performed well during the COVID-19 crisis and into stocks that could outperform as the economy recovers.
Teladoc has seen its growth accelerate during the pandemic. The virtual healthcare leader's revenue soared 109% year over year to $288.8 million in the third quarter, fueled by a 206% surge in member visits. Yet many investors are now questioning whether Teladoc will continue to deliver such impressive growth when it becomes safe for people to see their doctors in person once again.
Teladoc's skeptics, however, are overlooking one thing: Telehealth is here to stay, and it's set to grow even more popular in the years ahead. Virtual care consultations are convenient for patients and cost-effective for healthcare providers. Due partly to these reasons, telemedicine will become a $175 billion market by 2026, according to Global Market Insights. Few companies are poised to benefit from the growth of virtual care more than Teladoc.