What happened
Shares of Teladoc Health (TDOC 2.96%) were rising today on no company-specific news. Instead, some investors may be snatching up shares of the telemedicine company after its share price plunged 40% last week following the release of the company's first-quarter financial results.
The healthcare stock jumped by 9.4% as of 3:50 p.m. ET.
So what
Teladoc's share price cratered 40% on April 28 after the company released its first-quarter results. Investors focused their attention on the fact that the company recorded a $6.6 billion non-cash goodwill impairment charge and significantly lowered its annual guidance.
Image source: Getty Images.
But now some investors are seeing the company's massive share-price plunge as a buying opportunity and are adding the stock to their portfolio today.
This optimism may have been spurred by comments made by Ark Invest CEO and co-founder Cathie Wood. Following the stock's decline, Wood said that Teladoc Health is in the "same league" as Amazon. Wood's collection of exchange-traded funds (ETFs) owns a total of 11% of Teladoc's outstanding shares.
NYSE: TDOC
Key Data Points
Now what
Despite Teladoc's share-price jump today, the stock is still down a staggering 78% over the past 12 months. This drop doesn't mean that Teladoc couldn't end up being a good long-term investment, but investors should know that more short-term volatility is likely ahead.
Investors are still processing lots of information about rising inflation in the U.S. and a potential rate hike by the Federal Reserve this week. As they try to assess how the U.S. economy is doing, investors can likely expect more share-price swings from Teladoc and the broader market.
