Despite its leadership in the global telehealth space and quarter after quarter of strong growth, shares of Teladoc (TDOC 1.79%) have fallen by over 60% in the trailing 12 months. Should investors give up or is this just a sign of the broader market volatility? In this segment of Backstage Pass recorded on Dec. 22, Fool contributor Rachel Warren shares her personal take as a Teladoc shareholder.
Rachel Warren: Then SoCalEm says, "I just saw sell advisories from several Motley Fool services on Teladoc. Rachel, are you seeing things differently?" Thank you for the question. I know we've had quite a few sell advisories come out in recent days from a variety of services. I haven't had a chance to shift through all of them. I will say though, personally, I still really like Teladoc, as I mentioned earlier, I have a lot of faith in the business.
This is a stock I'm continuing to watch. It does not comprise the largest part of my portfolio.
It is one of a variety of companies that I hold in a variety of industries. For me, it's one that I have a lot of faith in. I believe that it can continue to grow and expand its business within the broader telehealth space.
That said, if I were to see a succession of quarters where there were items in the quarterly report that were of real concern, for example, really consistent declining user growth, not moving toward profitability as it continues to work down those net losses that had accrued from its acquisition of Livongo, things like that, then maybe I would take a second look.
For now though this is a company I'm continuing to hold onto and will continue to watch as we see more updates on the company, but that's just my personal take on it.
If this is a company you're considering, I encourage you to look into the business as well yourself and see if it's one that fits more with your personal investing philosophy or not. Because stocks like that are definitely not for everyone for sure.
