Why Teladoc Stock Crashed on Thursday but Immediately Recovered

By Neil Rozenbaum – Jul 22, 2022 at 5:30AM

NYSE: TDOC

Teladoc Health

Market Cap

$2B

Today's Change

(-2.40%) -$0.32

Current Price

$13.01

Price as of April 26, 2024, 4:00 p.m. ET

Amazon expanding its presence in the telehealth market sent the stock crashing down.

In this video, I will discuss what Amazon's (AMZN 3.43%) acquisition of 1Life Healthcare (ONEM) means for Teladoc (TDOC -2.40%) shareholders, as well as for Amazon:

Teladoc shares were down close to 8% Thursday morning before recovering to end the day basically flat.
Amazon reached an agreement to acquire 1Life Healthcare for $18 a share, which is close to an 80% premium from the closing price on July 20.
This move might make Amazon's most overlooked business segment even more lucrative.
Amazon and Teladoc both report their quarterly earnings next week.

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*Stock prices used were the closing prices of July 21, 2022. The video was published on July 21, 2022.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Rozenbaum has positions in Amazon, and Teladoc Health. The Motley Fool has positions in and recommends Amazon and Teladoc Health. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.