Teladoc stock crashes on earnings miss, slashed guidance

Yahoo Finance Live’s Julie Hyman and Brian Sozzi discuss first quarter earnings for Teladoc.

影片文字轉錄稿

[BELL]

JULIE HYMAN: There's Ford ringing the opening bell this morning. That was one of the other companies that came out with its numbers. I guess we better move on from the fluffy puppies.

BRIAN SOZZI: It's probably best we do that. Let's go into Teladoc, Julie. Let's stay on disasters here. Terrible earnings call, terrible guidance cut, and the stock is getting absolutely obliterated. This is the top trending ticker on the Yahoo Finance platform right now. And I'm locking in on our friend George Hill over at Deutsche Bank, who has been very negative on Rite Aid. Said a couple of weeks ago, the company might go out of business.

He has some harsh words over here for Teladoc, saying the company-- he's alarmed by some of these results that Teladoc put out yesterday last night after the bell, highlighting weakness into-- in the direct-to-consumer behavioral services part of their business. Ultimately, he's concerned about where that next catalyst for growth will come from. And George Hill is not alone. This stock is getting just eviscerated here by Wall Street, as it should. Terrible quarter, awful, brutal.

JULIE HYMAN: Yeah, yeah, a lot of downgrades, as you can see there. The numbers were just shockingly poor. And a couple of takeaways from this. First of all, you know, as a representative of the sort of pandemic era darlings, right, where all of us were only going to have video conferences with each other in the future and with our doctors, that future does not seem to be materializing if you look both at the actual numbers of companies like Teladoc or Zoom or Netflix for that matter, but also at the stocks and how they performed. I mean, Teladoc is lower than it was pre-pandemic, I believe, if you look at the-- yeah, there's the two-year chart. Indeed.

And then the other takeaway is, this is more bad news for the Arkiverse. Indeed, this is Cathie Wood's third largest holding in the-- her benchmark product, the Ark ETF, ARKK. And so, this slump means that Tesla, as the lone big outperformer in that portfolio, its record continues unabated, even as the rest of it just rolls over.

BRIAN SOZZI: Yeah, good thing Tesla is holding up there, Julie. But look, I mean, the Arkiverse, these are long-term investments, so maybe 50 years from now, Teladoc stock will recover this big plunge today. Who knows? Who knows?

JULIE HYMAN: Yeah, we'll see. I mean, we just heard [INAUDIBLE] talking about that investors should have a longer investment horizon, right?