What happened

Teladoc Health (TDOC 0.50%) was down by around 5% in midafternoon trading Wednesday. This, despite the news that renowned investor Cathie Wood's ARK Invest had bought a pack of the company's shares for two of its exchange-traded funds (ETFs).

So what

All told, two ARK Invest ETFs, ARK Innovation and ARK Next Generation Internet, together bought just under 200,000 shares of Teladoc Health for their portfolios.

Woman using telemedicine services.

Image source: Getty Images.

Not everything ARK touches turns to gold, however. Teladoc is considered by many to be a coronavirus stock. Since the pandemic seems to be receding (knock wood), some investors are moving on to companies perceived to be better plays for a post-outbreak economic recovery.

Compounding this is the great popularity the fast-growing Teladoc has enjoyed; its stock rose by a vertigo-inducing 139% across 2020, so it's now considered expensive by more than a few investors. Meanwhile, the guidance proffered by the company in its fourth-quarter results published last week indicate it'll more or less only meet analyst revenue projections for 2021. And it's well in the red on the bottom line.

Now what

None of this means that Teladoc is a bad investment. I think Wood's onto something here by buying during a slump: Teladoc has established itself as a go-to solution for remote healthcare. Considering that the U.S. population is getting older and will require more care, this company is in a fine position to benefit handsomely from the trend.