Ark Invest’s Cathie Wood continues to bet on Teladoc even as shares plunge. She said investors are missing out on a stock that is in the “same league” as Amazon. “This is a ‘winner-takes-most’ market and we think that yes, in the short term there was an earnings shortfall, they had to lower estimates… we’re looking at one of the biggest stories in care a category killer for the next five to 10 years,” Wood said on CNBC’s “The Exchange” on Friday. It comes the same week that shares of the telehealth giant plunged more than 40% after the company reported an earnings loss and slashed its guidance, suffering multiple downgrades from Wall Street. When the stock crashed, Wood, a longtime supporter of Teladoc, bought more than $20 million worth of stock, which is also one of the largest holdings in Ark Invest. “The story is not direct-to-consumer for Teladoc. That was certainly a big push during Covid. The story here is much bigger. It’s business-to-business,” Wood said, drawing attention to the company’s partnership. with Northwell Health to expand virtual care. . Teladoc is also well positioned to seize the lucrative US healthcare information systems market needed to better connect patients, doctors, insurance companies and hospitals, Wood said. She also said that she was impressed by the talent that Teladoc continues to attract, which includes a former manager of Amazon Web Services’ life sciences business. Meanwhile, Ark believes the stock could grow 10-fold, and Wood compared its growth to that of Amazon, which fluctuated in the years after it debuted on the public markets. Teladoc has clashed with the e-commerce giant in recent years as it enters the telehealth space, though Amazon has backed off its plans and partnered with the company on some initiatives, Wood said. “We see Teladoc in the same league as Amazon,” she added.
Ark Invest’s Cathie Wood continues to bet on Teladoc even as shares plunge. She said investors are missing out on a stock that is in the “same league” as Amazon.
