Can Teladoc Stock Recover From a Disastrous Start to 2022?

TDOC carries a substantial 66.7% year-to-date deficit

facebook twitter linkedin

Teladoc Health Inc (NYSE:TDOC) is down 7.3% to trade at $30.58 at last check, amid the latest tech selloff. The shares have been testing a floor at the $30 level since their May 12, roughly five-year low of $27.38, but still carry a substantial 66.7% year-to-date deficit, as the equity continues to struggle with resistance at its 20-day moving average.

TDOC 20 Day

Shorts have been piling on Teladoc stock of late. In fact, short interest is up 11.6% in the last two reporting periods, and the 27.80 million shares sold short account for 17.5% of the security's available float, or just over three days' worth of pent-up buying power.

The options pits also favor bearish bets. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TDOC's 10-day put/call volume ratio of 0.87 sits higher than 89% annual readings. This suggests that while are outpacing puts on an overall basis, puts are getting picked up at a quicker-than-usual pace.

Digging deeper, the telehealth concern has produced 413% annual revenue growth, but has also experienced a $6.9 billion decrease in net income since 2018. Plus, Teladoc’s trailing 12-month revenues have increased 5.5%, while its 12-month net income has dropped $6.47 billion since 2021.

Nonetheless, at a price-sales ratio of 2.29, the security continues to offer too great of a risk for fundamental-based investors, considering TDOC’s lack of profitability, relatively average revenue growth rate, and unfavorable balance sheet.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners