Though it's mercifully beginning to feel like a distant memory now, the aftereffects of the COVID-19 pandemic are still very much with us, though some have faded away faster than others. And Teladoc Health's (TDOC 1.74%) share price is proof of that.
There were a handful of companies back in 2020 that had incredible bull runs as the pandemic confined many to their homes. Teladoc was one of them.
Teladoc, which offers a specialized place for doctors and patients to hold remote appointments, was founded back in 2002 and had its initial public offering (IPO) in 2015. And it had pretty steady share price growth from 2015 to 2020.
Then, during the pandemic, Teladoc, Zoom, and other video-call programs saw explosive growth.
Image source: Getty Images.
When China first reported COVID-19 cases breaking out across the country in late 2019, Teladoc was trading for about $81 per share. Over the course of the next year the stock surged 224% and hit $263 per share in late January 2021.
But then came the vaccine, and a slackening of pandemic-era restrictions, and by the end of 2023 life had mostly returned to normal. Unfortunately for Teladoc, so had its share price. The company finished 2023 at $21 per share, lower than it was pre-pandemic and a 92% decrease from its peak.
Today it only trades for about $5, and even at these prices I wouldn't give Teladoc a look. It's fundamentally weak and lacks a real moat to protect itself.
NYSE: TDOC
Key Data Points
Somebody call a doctor
Teladoc has one glaring problem shared by most of the video calling companies like it. There's a lot of competition, and it's easy to switch between competitors. I've used Teladoc to meet with my doctors both during the pandemic and since, but I've also used Doxy.me, Zoom, and even Skype which was a throwback.
And it was bad enough when these companies only had to compete with each other during the pandemic. Now with doctor's offices open again, they also need to compete with people seeing their doctor in person. And, even after a few years of telemedicine being the norm, the National Institutes of Health found a full 71% of patients preferred in-person doctor's visits.
So, there's likely always going to be a place for telemedicine, but unless there's another pandemic, I don't see the companies providing it enjoying their previous stock-price highs anytime soon.
Now, on to Teladoc's other problem, its growth. Or rather, its lack thereof.
The company's revenue has utterly stagnated since the end of 2023. For the whole of 2023 it brought in $2.6 billion. For 2024 that fell 1% to $2.5 billion. Revenue has remained stagnant and moving downward through 2025. For the first quarter of 2025, revenue fell 3% year over year. Q2 of 2025 saw a 2% decrease and Q3 also saw revenue fall 2%.
It's not catastrophically imploding or anything; it's just steadily declining, and based on its previous three quarters of 2025, I don't anticipate its full-year results will hold anything game-changing.
It's also worth noting that the company has never been profitable, not even during its pandemic-era boom in 2021 when it had a net profit margin of negative 21%. It's better now at negative 8.8%, but with declining revenue I don't think profitability is in the cards anytime soon.
This is simply a company on the decline and one that's better-off avoided for the time being. And, unless Teladoc becomes profitable, it's likely to end up as another relic of the pandemic era.
