Teladoc hits all-time low as a risky pattern points to a deeper dive

Teladoc stock price crashed to a record low as demand for its services waned after the pandemic. It plunged to a low of $5.74, down sharply from the all-time high of $308, with its market capitalization falling from a high of $46 billion to the current $1 billion. This crash may continue as the stock has formed the bearish head-and-shoulders pattern.

The rapid fall of Teladoc, the biggest player in telehealth

Teladoc, the biggest player in the telehealth industry, has moved from being the hottest company into a fallen angel.

This slowdown happened as more patients moved to physical hospitals, leading to a significant slowdown in its business.

The most recent results showed that its revenue dropped by 2% in the third quarter to $862 million. This slowdown happened even as the healthcare industry continued growing.

Its profitability also continued falling, with the adjusted EBITDA moving from $83.3 million in the third quarter of 2024 to $69.9 million.

Teladoc’s Integrated Care Segment revenue rose from $384 million in Q3’24 to $390 million in Q3’25.  However, the BetterHelp segment continued deteriorating, with its sales falling to $237 million from the $257 million in the same period in 2024.

The Integrated Care segment’s EBITDA dropped from $68 million to $66 million, while BetterHelp made just $4 million.

These numbers happened as the number of users of its two segments diverged. Integrated care users rose to 102.5 million, while BetterHelp shed users to 382,000.

Wall Street analysts expect that Teladoc’s business will remain under pressure. The average estimate is that its fourth-quarter revenue will be $635 million, down by 0.81% YoY. If this happens, its annual revenue will be $2.5 billion, down by 1.8% YoY.

Teladoc’s losses are expected to remain, with the annual loss per share moving to 99 cents in 2025 to 86 cents this year. This loss-making will likely lead to more outstanding shares, which have jumped to 173 million from 160 million in 2022.

Wall Street analysts are highly pessimistic about the company, with most of them having a hold rating. Citigroup reduced its target from $10 to $9, while Bank of America slashed it from $9 to $8.

Teladoc stock price technical analysis 

TDOC stock chart | Source: TradingView

The daily timeframe chart shows that the Teladoc share price has crashed in the past few months. It has crashed from a high of $9.75 in October last year to the current $5.74.

A closer look shows that the stock formed a head-and-shoulders pattern whose neckline was at $6.77. The left shoulder was at $9 and the right one was at $8.

Teladoc stock has moved below all moving averages and the Supertrend indicator. Also, the Average Directional Index (ADX) has jumped to 20.5, its highest level since November last year. A surge to this level is a sign that the bullish momentum is continuing.

Therefore, the most likely Teladoc stock price forecast is highly bearish, with the next key support level being at $5. A drop below that price will point to more downside in the coming weeks.

The next main catalyst for the stock will be on February 25 when the company publishes its financial results.

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