Microsoft and Teladoc both announced layoff plans
Telehealth concern Teladoc Health Inc (NYSE:TDOC) and blue-chip component Microsoft Corp (NASDAQ:MSFT) are making moves today, after both companies joined the tech masses in announcing sizable layoffs.
Microsoft Plans to Cut 10,000 Jobs
After earlier rising as high as $242.38, Microsoft stock was last seen down 1.2% to trade at $237.48. The Big Tech behemoth plans to cut 10,000 jobs -- nearly 5% of its workforce -- by the end of the third quarter in an effort to bring down costs. MSFT is down more than 21.5% in the last 12 months, and has carved out a channel of lower lows since an all-time beak just below $350 in November of 2021.
Options traders have been slightly more bullish than unusual, and an unwinding of this optimism could add more headwinds. Microsoft stock's Schaeffer's put/call open interest ratio (SOIR) of 0.75 stands higher than just 3% of annual readings, and indicates short-term traders have rarely been more call-biased. What's more, MSFT's 50-day put/call volume ratio of 1.25 stands higher than 90% of annual readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).
Teladoc Removes "Redundant Roles"
Teladoc stock is 5.1% lower at $26.98 at last glance. The telehealth company said it removed "redundant roles" by cutting 300 jobs, or roughly 6% of its workforce in an effort to cut costs.
Beginning in mid-November, the $30 area moved in as resistance on the charts. A late-April bear gap sent the shares below the $50 level for the first time since April 2019, and in the last three months, TDOC has consolidated between $28-$30. Year-over-year, the stock is down 64.5%.
TDOC calls are also unusually popular at the moment. At the ISE, CBOE, and PHLX, the equity sports a 10-day call/put volume ratio of 3.67 that ranks higher than 98% of readings from the past 12 months.