Assessing Telehealth Stocks After Amazon’s Healthcare Exit (TDOC, UPH, WHSI, HIMS, SLHG)

Last week, Amazon unexpectedly announced it will shut down its proposed Amazon Care healthcare service.  The news came just months after laying out plans to expand the service, which included both telehealth and in-person care, across the country.  This was a welcomed development for telehealth companies that feared competing with the behemoth e-commerce company.

 According to Business Wire, the telehealth industry will grow from $26.4 billion to $70.19 billion in a matter of six years (2020-2026).   With Amazon no longer a threat to eat up a sizeable chunk of this growth several companies are in line to benefit and the market is already reacting.

Teledoc Health (NYSE: TDOC) saw a nice short-term spike but its gains were tempered by investors concerned it is only a matter of time before another giant with access to a primary care network will take their business.   Teledoc is a fully-integrated telehealth solution, currently the market leader, that position may be baked into the price.  Investors looking to find opportunities in the telehealth sector could look to TDOC’s smaller competitors such as UpHealth (NYSE:UPH)  operates a scalable platform that’s generating gross margins of close to 40%. In Q2, the company’s top line climbed 37% YOY to $43.7 million.  While that may be a great option, UPH could ultimately face the same fate as TDOC if a company like Amazon, or a larger healthcare provider with built-in access to a massive network could easily overtake the telehealth upstarts.

Investors seeking short and long term upside in telehealth may benefit from ancillary plays with telehealth-ready technology.

“TELEHEALTH READY” IS A MUST FOR NEW HEALTHTECH COMPANIES

Wearable Health Solutions, Inc. (OTCMKTS: WHSI) is a speculative play with telehealth-ready technology set to launch this month.   After a delay based on the supply chain, the medical equipment company is ready to release its much-anticipated offering.  The upgraded iHelp MAX™ 4G  features Wi-Fi, NFC (wireless data transfer) technology, and Bluetooth 4.0 Low Energy features. Its “telehealth-ready” advantages include remote monitoring and transmission of the user’s health vitals to emergency personnel and caregivers.

Investors reacted favorably to the announcement driving the stock up as much as 30%, after some profit taking this week, this may be an opportune time to start researching the company.  There are several major catalysts on the horizon such as:

• An anticipated uplisting
• Major marketing push on Kathy Ireland’s business show, 
• Projected increase in revenues due to the 4G launch

WHSI’s efforts to increase brand recognition are key, it is the reason another telehealth play, Hims & Hers (NYSE: HIMS) has thrived.   The company’s extensive branding and specialization make it stand out in the telemedicine industry.  HIMS is a health company that specializes in serving seniors. It sells drugs and personal care products. But it’s best known for selling treatments for erectile dysfunction and hair loss.

The company’s extensive branding and specialization make it stand out in the telemedicine industry.  Earlier this month, HIMS announced a Q2 year-over-year revenue increase of 87% to $113.6 million for the second quarter of 2022.  This increased the company’s full-year revenue guidance to the range of $470 million to $485 million and Adjusted EBITDA guidance to the range of $(27) million to $(20) million.

The news caused investors to bid the company up as high as 11%, however, since its mid-August peak it has dropped below pre-earnings announcement prices, possibly a good time to look into the company.

Another telehealth company with positive revenue news recently, Skylight Health Group (NASDAQ: SLHG), announced total revenue earned through clinical studies in 2021, $300,000, has been doubled in 2022.   SLHG is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state primary care health network comprised of physical practices providing a range of services from primary care, sub-specialty, allied health, and laboratory/diagnostic testing. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools including proprietary technology, data analytics and infrastructure. 

CONCLUSION

Amazon’s exit from the healthcare and telehealth space has created a ton of upside for companies in the industry.  TDOC is the leading telehealth play but is still vulnerable and possibly a bit overweight, UPH could be the best value as a pure telehealth investment but faces the same challenges as TDOC.   WHSI may have the most upside of the bunch with its new telehealth-ready device set for launch.  HIMS and SLHG have reported positive revenue growth that could continue in future earnings reports.  Start your research today.

Start your research here: https://topnewsguide.com/wearable-health-solutions-inc-whsi-profile/

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