Deutsche Bank analyst views the partnership with Amazon Inc (NASDAQ:AMZN) as a "very modest win" for Teladoc Inc (NYSE:TDOC).
- The analyst, George Hill, never saw Amazon as a serious threat in telemedicine, and he considers the move to be "another stumble" for Amazon as it tries to "navigate the complicated healthcare landscape with little measurable success."
- He keeps a Hold rating on Teladoc shares.
- Patients who use the Amazon devices will be directed to the Teladoc service and will have to follow the Teladoc process of registration or enrollment before seeing a provider.
- Earlier this week, Teladoc Health launched a virtual care offering on Amazon's Alexa.
- Teladoc on Alexa will initially launch via audio, with video visits coming soon.
- Also See: Teladoc Health Posts Smaller Than Expected Q4 Loss, Issues Soft Q1 FY22 Outlook.
- Also, William Blair analyst Ryan Daniels said that the partnership eliminates Amazon competition fears, but he does not believe this will be a "noteworthy revenue driver."
- The threat of competition from Amazon was a bear case that weighed on Teladoc shares in the past, said Daniels, who also thinks the partnership could broaden to include more subscription revenue and contends that the company could benefit if the solution is included in Amazon's national rollout of Amazon Care.
- Daniels keeps an Outperform rating on Teladoc shares.
- Price Action: TDOC shares are down 4.22% at $71.08 on the last check Wednesday.
