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.”