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Teladoc Health vs. American Well Corp : Which Telehealth Stock Could Offer Better Returns?

The COVID-19 pandemic has aided the growth of telemedicine as it helped reduce contact between healthcare staff, workers, and patients minimizing the risk of contracting the virus. According to a
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The COVID-19 pandemic has aided the growth of telemedicine as it helped reduce contact between healthcare staff, workers, and patients minimizing the risk of contracting the virus.

According to a market research report from Grand View Research, the telemedicine market on a global basis was estimated to be worth $55.9 billion last year and is anticipated to grow at a compounded annual growth rate (CAGR) of 22.4% between 2021 to 2028.

Using the TipRanks Stock Comparison tool, let us compare two telemedicine companies, Teladoc Health, and American Well Corp., and see how Wall Street analysts feel about these stocks.

Teladoc Health (TDOC)

Teladoc Health provides virtual healthcare services to clients including health plans, hospitals, employers, and insurance and financial services companies on a business-to-business (B2B) basis. The company generates revenues on a recurring contractual basis with a subscription access fee that is either on a per-Member-per-month (PMPM) or per-enrollee-per-month (PEPM) basis.

In certain contracts, the company charges fees on a per-subscriber basis and for some clients, TDOC charges access fees as well as visit fees. Most of the company’s revenues consist of access fees which made up 85.5% of the company’s total revenues in Q1.

Last month, TDOC announced its Q1 results. The company’s revenues soared 151% year-on-year to $453.7 million but losses widened as it reported a net loss of $199.6 million compared to a loss of $29.6 million in the same quarter of last year.

The company’s paid memberships in the United States increased 20% year-on-year to 51.5 million in Q1 and it expects paid membership to range between 52 million to 53 million in Q2.

In the second quarter, TDOC expects revenues to be in the range of $495 million to $505 million and adjusted EBITDA to land between $61 million and $64 million. The adjusted EBITDA forecast includes a benefit of $6 million from lower expenses on Livongo devices because of purchase accounting adjustments related to the Livongo merger.

For FY21, the company raised its revenue outlook and has forecast revenues of $1,970 million to $2,020 million driven by strong momentum in PMPM fees and higher utilization of its services, particularly when it comes to specialty visits. Teladoc expects adjusted EBITDA of between $255 million and $275 million, including a $20 million benefit due to lower expenses on Livongo devices.

In April this year, TDOC entered into an extensive agreement with Blue Cross Blue Shield to offer its whole-person virtual healthcare solutions to its members on the East Coast. As a part of this agreement, from early next year, the company will provide members access to its virtual healthcare suite of products including digital chronic care solutions.

The company commented on this deal at its earnings call, “This deal is notable as it covers all of the plan's commercial books of business and represents another significant competitive takeaway. Moreover, it demonstrates the power of our broad and integrated suite of products and our proven ability to deliver industry-leading utilization and member engagement, which ultimately drives clinical and financial ROI for our clients.”

Earlier this month, the company launched an integrated mental health service that would provide targeted and personalized care to its consumers called myStrength Complete. This service is expected to be available to consumers in July this year through their health plans or their employers.

Teladoc’s acquisition of Livongo, valued at $18.5 billion, was completed last year and has been greatly beneficial for the company. In the first quarter, the company added 62,000 new members for Livongo’s chronic condition management suite of products.

As more members are opting for the Livongo chronic care suite of products, Teladoc’s revenues for its top 10 chronic care member accounts have risen year-over-year. According to the company, as 40% of adults in the United States have more than one chronic condition, Teladoc views a significant long-term opportunity for this service.

The company is also noticing a rise in specialty care services which is acting as a gateway to an increased usage of TDOC’s multiple services. TDOC stated at its earnings call that members who used its specialty care services also had 40% more general medical visits per member.

TDOC’s virtual healthcare solutions are also gaining traction in international markets as indicated by its partnership with MetLife in Australia and a strategic agreement with insurance carrier Generali Hong Kong to offer its services. (See Teladoc Health stock analysis on TipRanks)

Last month, Stifel Nicolaus analyst David Grossman lowered the price target from $234 to $195 and reiterated a Hold on the stock. The analyst commented on TDOC’s Q1 results in a note to investors, “We did not anticipate 1Q as a potential catalyst (+/-) and the same uncertainty relative to secular growth post-pandemic persists. Consensus assumes 31% and 25% revenue growth in 2022/2023, respectively, while 2021 unit growth remains flat to +4%.”

“While the pandemic pulled forward demand and skews the comparisons, we have little visibility on unit growth and pricing beyond this year other than management's qualitative, but positive commentary about new sales, pipeline and increasing demand for multi-product solutions. At 12x 2022 revenue, it is difficult to advocate getting overly aggressive with this stock until visibility on unit growth and pricing metrics improve,” Grossman added.

Consensus among analysts on Wall Street is a Moderate Buy based on 13 Buys and 6 Holds. The average analyst price target of $235.11 implies 62.8% upside potential to current levels.

American Well Corp. (AMWL)

American Well Corp. is a telehealthcare company whose Amwell Platform is a complete digital healthcare solution for its clients. As of March 31, the company’s platform had powered telehealth services for around 55 health plans that supported approximately 36,000 employers.

The company generates revenues by offering the Amwell Platform on a subscription basis and in addition, fee-based professional services and access to AMG, a medical group affiliate that provides clinical services on a fee-for-service basis.

Last month, Amwell also unveiled its Converge platform, an open architecture, single cloud-based technology platform that can host and operate applications from third-party apps as well as provide unified digital care by hosting all the company’s products and programs.

AMWL is upbeat about the Converge platform and expects it to have a significant positive impact over multiple years on its financial performance starting from next year. The company expects to attract a greater number of clients, retain its current client base, and perceives upsell opportunities with this platform.

The company is also eyeing the international market with Converge as its open architecture can be expanded quickly and efficiently.

Earlier this month, the company reported strong results for the first quarter. The digital healthcare company reported a loss of $0.16 per share in Q1, which narrowed from a loss of $0.58 per share in the same quarter last year. The company generated revenues of $57.6 million, up 7.3% from the year-ago period.

Total active providers surged 240% year-over-year to approximately 81,000, while total visits increased 120% to 1.6 million in Q1. The company defines active providers as those who have delivered healthcare services over the platform over the past year.

The company passed a significant milestone in Q1 as total visits performed on the Amwell platform since inception surpassed 10 million.

In the second quarter, AMWL anticipates similar levels of services revenues to Q1. For FY21, American Well expects revenues between $260 million to $270 million while the AMG visit volume forecast is between 1.5 million and 1.7 million. (See American Well Corp. stock analysis on TipRanks)

The company expects to incur an adjusted loss before interest, taxes, depreciation, and amortization of between $157 million and $147 million in FY21.

Earlier this month, Needham analyst Ryan MacDonald reiterated a Hold on the stock following AMWL’s earnings. MacDonald said in a research note to investors, “Management aptly described the current state of the telehealth market, in which demand for services is in decline while demand for the enabling technology is increasing. This has led to excitement for the launch and adoption of AMWL's new Converge platform.”

“However, with migrations taking place in the coming quarters, and little expectation for monetization before 2022, AMWL finds itself in a state of transition. As such, we await signs that Converge is accelerating the shift to higher margin subscription revenue via new bookings or expansion activity,” MacDonald added.

Consensus among analysts on Wall Street is a Moderate Buy based on 4 Buys and 6 Holds. The average analyst price target of $21.21 implies 78.2% upside potential to current levels.

Bottom Line

While analysts are cautiously optimistic about both stocks, based on the upside potential over the next 12 months, AMWL seems to be a better buy.

The post Teladoc Health vs. American Well Corp : Which Telehealth Stock Could Offer Better Returns? appeared first on TipRanks Financial Blog.

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United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

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United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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