Some Teladoc (NASDAQ: TDOC) investors may be cursing the name Jeff Bezos this morning after seeing their stock dip.
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But, could Amazon (NASDAQ: AMZN) have actually just gifted them a great buying opportunity following the release of its telehealth competitor, Amazon Care, to employees nationwide?
Will Amazon kill Teladoc?
Add that question to the growing list of hypotheticals that have yet to come to pass:
- “Amazon Handmade will kill Etsy.”
- “Amazon Pharmacy will kill Big Pharma.”
- “Whole Foods will kill big-box retail.”
- “Prime Video will kill Netflix.”
The list goes ever on, and the answer is usually no, and here’s why:
- Firstly, Amazon Care launched 2 years ago — this isn’t new.
- Secondly, the e-commerce giant has only announced that Amazon Care will begin rolling out to its U.S.-based employees beginning in the summer, as well as some select employers — not exactly a game-changing event.
- Third and lastly, telemedicine is a relatively new industry that is expected to grow at a CAGR of almost 40% to reach $192 billion by 2025 from an estimated $39 billion in 2020. And if you think that’s not enough, the U.S. healthcare industry as a whole is worth closer to $9 trillion — with a ‘T’.
There’s plenty of business to go around when Amazon does eventually catch up, and despite its deep pockets, it has a long way to go before it can replicate its e-commerce and cloud success within the healthcare space. And don’t forget, Amazon is not invincible, as evidenced by the many companies it has not put in the ground with competitors — see list above.
So, in the words of the famous sci-fi author, Douglas Adams:
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