Why Teladoc Stock Could Soar If Moderna's Scary Prediction Comes True
The virtual-care leader's fortunes could be linked to what happens next with COVID-19 -- at least, for now
From the Motley Fool: https://www.fool.com/investing/2021/08/13/why-teladoc-stock-could-soar-if-modernas-scary-pre/
Moderna (NASDAQ:MRNA) and Teladoc Health (NYSE:TDOC) might not seem to share much in common. One develops messenger RNA (mRNA) vaccines and therapies, while the other ranks as a leader in virtual care. However, in some ways, the fortunes of these two companies are intertwined.
Both Moderna and Teladoc really hit their stride last year due to the COVID-19 pandemic. Moderna, of course, became a favorite for investors as it achieved amazing progress on developing a COVID-19 vaccine. Teladoc became a big beneficiary of the pandemic as millions turned to virtual healthcare visits.
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Moderna's scary scenario
I'm not trying to be an alarmist by using the word "scary" to describe the potential scenario that Moderna president Stephen Hoge discussed in the company's Q2 call. I'm using Hoge's own description.
Hoge was asked by an analyst during the call about how the coronavirus might mutate and evolve. He responded:
If you think about how this might play forward, it seems logical to us that those three mutations present in the beta, gamma line, and those two mutations present in the delta might find some way to combine in new and potentially scary ways. And if that came with the increased transmissibility, force of infection that delta can achieve, that might be a significant threat.
A surefire catalyst
How does Teladoc fit into the potentially scary future that Hoge described? My view is that anything close to the scenario that the Moderna president laid out would provide a surefire catalyst for Teladoc's shares.
Hoge talked about the potential for "a significant threat" resulting from the current coronavirus-variant mutations combining to become more contagious. If this threat materializes, it's likely that many people would choose to limit their going out -- even if governments didn't reinstate lockdowns. I suspect that would especially apply to doctors' visits since there could be a greater chance of being infected in the scenario Hoge discussed.
Related thread: https://www.democraticunderground.com/100215729381
= new reply since forum marked as read
I'm sorry MisterNiceKitty, I'm sure you're a good person. But Wall Street gets no sympathy here. Many of us believe that no profit should be made from all this misery. The rest are already tapped out on all the other crazes before this one.
