Today's Stock Idea: Teladoc (TDOC)
One of the best performing stocks of 2020 -- behind Vir Biotech (VIR) and Zoom Video Communications (ZM) -- traders took profit in Teladoc Tuesday.
The stock was down about 5% following news at the open from digital healthcare company VitalTech it will partner with AT&T (T) to offer "60 days of free telehealth services through the VitalCare® platform to business customers like hospitals."
Teladoc shares fell about 2% as the VitalTech press release hit newswires, then rebounded from below the $157 level. Later in Tuesday's session, when that $157 level came back into play, volume spiked as shares fell to a low under $153.
Traders may have attributed the weakness in Teladoc shares to the fact a seeming competitor for its telehealth/digital healthcare services was partnering with a major consumer-related corporation like AT&T.
In addition, with Teladoc shares up about 82% so far in 2020 -- especially with the S&P 500 down 19% year to date -- traders may have viewed the VitalTech news as an opportunity to lock in some gains in Teladoc.
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