The share price of whole-person virtual care operator Teladoc Health (NYSE:TDOC) has tumbled owing to its unimpressive second-quarter earnings. Although the company’s personalized virtual care offerings should bode well for the stock, we think the company's high valuation and widening losses in the face of stiff competition could cause its shares to decline further. Read more to find out.Virtual healthcare company Teladoc Health, Inc. (TDOC) in Dallas, Tex., offers expert medical services, behavioral health solutions, and various telehealth solutions under the Teladoc, Advance Medical, Livongo, Best Doctors, BetterHelp, and HealthiestYou brand names. Shares of TDOC have dipped 25% so far this year and 8.6% over the past month. This price slump can be attributed primarily to TDOC’s wider-than-expected operational losses in the second quarter of 2021.
Although the company reported strong revenue growth in the quarter, its total expenses and losses increased significantly year-over-year.
While the launch of its “myStrength Complete” personalized mental health service and strategic agreement with HCSC to offer its suite of whole-person chronic care solutions could strengthen its position in the telehealth industry, its bleak growth prospects and slim profit margin could continue concerning investors. In addition, in a highly competitive environment, the stock may not be able to sustain its high valuation.