In August 2020 I posted about Teladoc’s acquisition of diabetes management company Livongo. My report was fairly neutral. At the end, however, I noted, “both companies’ stocks made it onto the markets’ Biggest Loser list on the day of the merger announcement, with Teladoc down 19% and Livongo off by 11% — the second and fourth biggest losers for the day, respectively.”
The Teladoc stock re-emerged as a Wall Street darling, rebounding to a high stock price of $293 in February 2021. Today, it closed at $29.77.
Well, the entire stock market is down. But not by 90%.
Some analysts (and, implicitly, Teladoc itself) pin Teladoc’s disappointing financials on Livongo — an exodus of Livongo employees (including leaders), disappointing program metrics, and product integration challenges.
I wouldn’t count Teladoc out, and some prominent investors and analysts are optimistic about the company’s future. But in an Axios article, Jim Kramer (sic?) is quoted:
“I’m not saying Livongo is worthless and Glen Tullman [Livongo co-founder] fooled Teladoc. I’m saying Livongo wasn’t worth near as much and Glen Tullman made a good deal.”
About The Author: Bob Merberg
Bob Merberg, Principal Consultant of Jozito LLC, has 20+ years of experience leading employee wellbeing strategies and now channels his knowledge and experience to help employers bolster employee wellness and organizational outcomes. He recently introduced Mental Health First Aid Training into his practice to help employers address the burgeoning employee mental health crisis.
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