Teladoc Health (TDOC) posted solid fourth-quarter results, but investors shrugged off the 145% year-over-year revenue increase. In this video from Motley Fool Live, recorded on March 1, Fool.com contributors Brian Orelli and Keith Speights discuss the volatile nature of the company's stock price and why the recent decline shouldn't be an issue for long-term investors.
Brian Orelli: Then turning to Teladoc, which reported fourth-quarter earnings on Wednesday. Revenue was up 145% year over year as people don't want to go into the doctor, but still need to see them, and that includes access fee revenue, which was up 149%, 188% increase in the United States, and then visit fee revenue which only makes about 14% of the total was up 80%. But shares of Teladoc, even with that pretty strong performance, were down nearly 14% on Thursday. What gives?
Keith Speights: A high-flying stock like Teladoc Health can't afford to have any mistake and they missed Wall Street's earnings estimates and the stock fell. That was the big thing there. At the Motley Fool, of course, we always tell investors, don't worry, don't focus too much about one quarter. Look at the big picture, look at the long-term. Sometimes a quarterly performance will give you some hints about how the long term is going to play out, but in this case, I'm a Teladoc Health shareholder, I wasn't worried. Hey, sometimes good companies miss Wall Street earnings estimates. Sometimes I don't think it's as much the issue with the company as a digital Wall Street analyst. [laughs] But yeah, I mean, they are projecting their revenue to nearly double over the next year and so I think Teladoc is still in pretty good shape.
Orelli: I'm bringing up the chart just to see how it dropped but how much has it really dropped in the last -- so it's only as cheap as it was in January [laughs]. They haven't really lost that much unless you are really a recent investor, you're still doing just fine investing in Teladoc.
Speights: Yeah. I mean, that kind of swing isn't all that unusual with the growth stock like Teladoc, but it could make up that amount just as quickly.