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Could Competitors Threaten Teladoc's Dominance?

By Taylor Carmichael - Feb 26, 2021 at 2:00AM

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Right now Teladoc Health is the dominant name in virtual healthcare. Are there any internet companies that might dislodge Teladoc from its leadership position?

Teladoc Health (TDOC 6.61%) is the top dog and first mover in moving doctor visits to the internet. It's a huge market opportunity, and rivals will no doubt try to take market share. Does Teladoc have a moat? What does the competitive landscape look like? Healthcare and Cannabis Bureau Chief Corinne Cardina and Motley Fool contributor Taylor Carmichael discuss possible possible rivals to Teladoc Health. This segment was recorded live on Feb 19

Corinne Cardina: Can we touch on the financials for Teladoc really quickly? You mentioned Zoom (ZM 7.38%). How do you maybe think about Teladoc versus a company like Zoom? Would that be a legitimate comp?

Taylor Carmichael: As far as competition, I don't think Zoom is going to take market share from Teladoc. I think Teladoc has some very strong brand advantages, and I don't think Zoom does. I would have to see it to believe it. I mean, just the fact that people use Zoom is not quite the same thing as "I want to talk to a doctor when we go to Zoom." They'd have to set that up and set up that business. They'd have to get a network of doctors. They made noises about it, but I don't see them. Amazon (AMZN 0.19%) might get into this area too. There will be competitors in online healthcare, but I think Teladoc has a very strong position that way. In terms of numbers, they're not profitable yet. I'm not worried about that personally because they're still in a high-growth stage. We're seeing 100% revenue growth. I just think they have a wonderful business and an enviable business. I think this is a great place for investors to be long term. You might get a cheaper price in the next year. We can't predict what the stock is going to do over the next year, but this is a great place for investors to be for the next 10 years, the next 20 years. It's a wonderful company and wonderful space to be in.

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Stocks Mentioned

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
TDOC
$32.91 (6.61%) $2.04
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$2,146.38 (0.19%) $4.13
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$90.94 (7.38%) $6.25

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