Why Teladoc Stock Is Plummeting Today

Core Insights - Teladoc's stock experienced a significant decline following the release of its fourth-quarter results, with a drop of 11.7% noted during trading [1] - The company's Q4 report was mixed, showing sales that exceeded Wall Street expectations but a larger-than-expected loss [2] Financial Performance - In Q4, Teladoc reported a revenue decline of 3% year over year, totaling $640.49 million, while the loss per share was$0.28, compared to a consensus estimate of a $0.22 loss on$639.44 million in revenue [3] - The integrated care customer count increased by 5% year over year, but average revenue per user fell by 2%, indicating weakening pricing power [4] Future Guidance - For the current year, Teladoc projects sales between $2.468 billion and$2.576 billion, suggesting a potential decline of approximately 1.9% from last year's sales of around $2.57 billion [5] - The company anticipates an annual loss per share between$0.50 and $1.10, which is an improvement from last year's loss of$5.87 per share [5] Strategic Challenges - Despite efforts to cut costs and reduce losses, Teladoc's growth has stalled, and there is uncertainty regarding future catalysts for growth [6] - The company has faced challenges due to previous acquisitions and significant write-downs, complicating its path to profitability and sustainable sales growth [6]