Report Questions Sustainability of Teladoc Growth

A report from Seeking Alpha, a stock market insight and financial analysis provider, suggests that Lewisville-based Teladoc Inc. may not be able to maintain its current growth trajectory without burning its own cash.

Teladoc, the only telehealth company that’s public—its initial public offering came in 2015—has enjoyed significant market traction from the passage in May of the Texas telemedicine bill.

Teladoc stock is priced currently at $32 per share–its highest value yet. Teladoc is the largest telehealth company, with a 75 percent share of the market, according to Seeking Alpha. But the company’s aggressive moves spurring growth in revenue, membership, and visits have come at a price, Seeking Alpha says.

According to the report, Teladoc’s short interest—a measure indicating the number of people who believe the stock price is likely to fall—is currently high, at 23.85 percent. And, it has exceeded 20 percent for nearly a year now.

If Teladoc’s market-fueled growth is not sustainable over a longer period of time, as the “short percentage of float” figure suggests, the company may have to use its own funds in order to maintain its current growth, the Seeking Alpha report says.

Posted in Finance, News.