Teladoc Health Inc (NYSE:TDOC) is plunging today after the virtual healthcare provider reported second-quarter revenue of $606.9 million, missing Wall Street's estimate of $615.4 million, and lowered its full-year revenue guidance. While the company posted a smaller-than-expected loss of 21 cents per share, investors focused on slowing growth in its BetterHelp mental health business. At last glance, TDOC was down 22% at $7.15, landing on the short sell restricted (SSR) list.
Should these losses hold, it will be the equity's largest single-day percentage loss since a 23.7% drop in February of 2024. While gapping below the 30-day moving average, which helped capture losses since May, TDOC is still holding on to a 2% year-to-date lead.
Wall Street remains strongly skeptical. Of the 26 analysts covering Teladoc, 19 carry a "hold" rating, while seven say "strong buy." Plus, the 12-month consensus price target of $8.10 was already an 11.8% discount to yesterday's close.
Options traders have shown a strong preference for calls. Teladoc's 50-day call/put volume ratio of 29.13 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 91% of annual readings.
Meanwhile, short interest accounts for 15.96% of Teladoc stock's available float, representing six days worth of pent-up buying power.
