U.S. markets open in 4 hours 21 minutes

Benzinga Pro's Stock To Watch For Wed., Apr. 1, 2020: Teladoc (TDOC)

Benzinga Newsdesk

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.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.