Teladoc Health stock price continues to crash and is hovering at its lowest level on record ahead of its first-quarter earnings. It was trading at $7.16 on Monday, meaning that it has crashed by 21% this year and 46% in the last 12 months. This article explores why the TDOC share price has imploded and what to expect in the coming weeks.

Why Teladoc Health stock price crashed

Teladoc Health is an American company at the intersection of health and technology. It is the biggest player in the telehealth industry, helping customers communicate and receive advice from doctors from across the country. 

The company’s business boomed during the COVID-19 pandemic as many patients embraced telehealth. This growth pushed its stock to a record high and its market capitalization to over $46 billion. 

Teladoc leveraged this growth to expand its business through strategic acquisitions. It paid over $18.5 billion to acquire Livongo Health, a similar company that focuses on the diabetes sector. This acquisition did not work ou, and the company took a large charge on it. It made a $13.4 billion goodwill impairment, a sign that Livongo’s valuation was not as expected. 

Teladoc Health’s performance is in line with other top companies that boomed during the pandemic and then lost momentum when it ended. Other notable companies include PayPal, Zoom Video, Etsy, and Wayfair.

Read more: Teladoc (TDOC) stock price analysis and the fall from grace

After seeing strong growth at the time, Teladoc’s business has stalled. Its revenue doubled from $1 billion in 2020 to $2.03 billion in 2021. It then peaked at $2.6 billion in 2023 and recoiled to $2.56 billion last year. 

Analysts are not optimistic about Teladoc as demand for telehealth services wanes. Their average revenue estimates for 2025 and 2026 are $2.52 billion and $2.51 billion. The company’s guided range for its revenue is between $2.468 billion and $2.57 billion.

TDOC earnings ahead

The most recent financial results showed that its business deteriorated in the fourth quarter. Its revenue dropped by 3% to $640 million, while the adjusted EBITDA plunged to $74.8 million from $114.4 million in the same quarter a year earlier. 

Most of the weakness came from the BetterHelp segment, whose revenue dropped to $250 million from $276 million a year earlier. The integrated care segment’s revenue rose slightly to $391 million. 

Analysts are pessimistic about Teladoc’s business, with the average revenue estimate at $619 million, a 4.16% decrease from the same period last year. They expect that its net loss per share will improve from 43 cents to 36 cents.

The only positive on Teladoc is that its balance sheet is still strong as the company ended the quarter with over $1.2 billion in cash and short-term investments. This cash balance matches with its current market cap.

Teladoc stock technical analysis and potential scenarios

The daily chart shows that the TDOC share price has crashed in the past few months. It peaked at $15.20 in March and then retreated to a low of $6.5 as recession odds rose in the United States.

The stock has formed a giant double-bottom pattern at $6.77 since this price was also the lowest level in August last year. Its neckline is at $15.19, up by 124% from the current level. 

The Teladoc share price remains below all moving averages. Therefore, while TDOC is risky, there is a likelihood that it will bounce back and possibly retest the important resistance level at $8.77, up by 23% from the current level. The other scenario is where its results are so bad such that the stock crashes and retests the year-to-date low of 

Read more: Teladoc Health stock: extremely oversold, rebound likely

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Investors should load up on Spotify Technology SA (NYSE: SPOT) if it sells off after earnings later today, says Ben Swinburne.

He’s a senior analyst at Morgan Stanley.

Estimates are for Spotify to report per-share earnings of €2.21 ($2.52) for its Q1 on €4.2 billion in revenue.

This would mean a more than 10% increase in the top- as well as the bottom-line.

Ahead of SPOT’s earnings release, Swinburne rates Spotify stock at “overweight”. His $670 price target indicates potential upside of about 12% from current levels.

Swinburne’s bullish view is particularly exciting, given shares of the streaming giant have already doubled over the trailing 12 months.

Why is Morgan Stanley keeping bullish on Spotify stock?

Morgan Stanley remains positive on Spotify shares as continued “production innovation and business model evolution” could lead to significant positive earnings revisions in the months ahead.

According to Ben Swinburne, investors are underestimating just how big of a lead SPOT really has in terms of engagement over its rivals.

“Spotify users in the US listen to the service 50% more than the next best competitor,” he revealed in a CNBC interview this week.

With movies and TV shows, users often subscribe to a streaming platform that has rights to what they want to watch, and then switch to a different service next month.

But for music, there aren’t that many alternatives. So, the churn is “structurally lower” at Spotify, the analyst added.

SPOT shares could benefit from a push into video podcasts

Ben Swinburne recommends buying Spotify stock on any post-earnings weakness that may show up later today as it’s a “differentiated product” that’s mastered the art of balancing investment and monetisation.

SPOT shares are poised for continued gains in the long run now that it’s “making a big push into video podcasts” as well, according to the Morgan Stanley analyst.

Note that video podcasts reportedly drive higher engagement and lower churn at Spotify.

That said, shares of the company based out of Stockholm, Sweden do not currently pay a dividend, which makes them unsuitable for those interested in setting up a new source of passive income.

Spotify is free from tariffs and recession related overhangs

Finally, Morgan Stanley is constructive on SPOT stock as Trump tariffs threaten the global supply chains and a potential recession by the end of 2025.

Spotify shares remain worth owning this year as media and entertainment subscriptions tend to be “among the most defensive business models” amidst such a challenging macroeconomic backdrop.

Note that Spotify currently generates more than 90% of fits annual revenue from subscriptions.

Other Wall Street shops seem to agree with Morgan Stanley on SPOT shares as well, given the consensus rating on the New York listed firm currently sits at “overweight”.  

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Associated British Foods experienced a notable downturn in its financial performance during the first half of the fiscal year, reporting a 10% decrease in pre-tax profit. 

This decline was primarily attributed to significant losses within the company’s sugar division, which faced challenging market conditions and potentially lower selling prices or increased production costs, according to a Reuters report. 

Associated British Foods (ABF) is a British conglomerate with diverse operations spanning food, agriculture, ingredients, and retail. Primark is ABF’s retail arm.

Profit decline hits sentiments

The negative financial results had an immediate impact on investor sentiment, leading to a sharp 8% drop in ABF’s share price in the initial hours of trading on Tuesday, indicating concerns among shareholders regarding the company’s profitability and future outlook. 

This development highlights the sensitivity of the market to earnings reports and the potential for specific divisions within a diversified conglomerate to significantly influence overall financial performance and market valuation. 

Despite acknowledging weaker sales within its UK and Ireland markets, the retail conglomerate maintained its projected “low single digit” annual growth for its Primark clothing division. 

Expansion aims to offset weakness

This optimistic outlook is primarily fueled by the strategic expansion of ABF’s physical presence through the opening of new stores in continental Europe and the United States. 

The company anticipates that the revenue generated from these newly established locations will be substantial enough to compensate for the anticipated downturn in sales experienced in its more mature domestic markets. 

This strategic focus on international expansion underscores the group’s confidence in the Primark brand’s appeal beyond its traditional strongholds and its commitment to achieving overall growth despite regional challenges.

Primark experienced a 1% increase in sales, reaching 4.5 billion pounds.

This news follows the recent resignation of its chief executive, Paul Marchant, who departed last month due to allegations of inappropriate behaviour.

The company said:

While we continue to assume our trading in the UK remains challenging in H2 2025, there have been some early signs of improvement in recent weeks.

AB Foods anticipates a full-year adjusted operating loss of up to £40 million ($54 million) in its sugar division. 

This projection accounts for sustained low sugar prices in Europe, losses within its UK bioethanol operation, Vivergo, and difficulties encountered in Tanzania and South Africa.

The company stated that its review of the Spanish sugar business, Azucarera, was nearing completion. 

It also indicated it might mothball or close the Vivergo plant, contingent on changes to the UK’s bioethanol regulations.

The company reiterated its previously stated outlook for its grocery, ingredients, and agriculture divisions.

Outlook

In the first half of its fiscal year, ending on March 1st, the company reported an adjusted operating profit of £835 million. 

This figure represents the management’s preferred metric for assessing the underlying profitability of the business. 

Notably, this profit was achieved on a flat revenue of £9.5 billion when measured on a constant currency basis. 

This indicates that despite no growth in overall revenue when exchange rate fluctuations are factored out, the company managed to maintain a substantial level of operating profitability during the reported six-month period. 

At the time of writing, shares in AB Foods was down 7%, wiping out most of the 10% gain recorded so far this year.

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BP posted weaker-than-expected earnings for the first quarter on Tuesday, as lower crude prices and a recent pivot in corporate strategy weighed on performance.

The British oil major reported an underlying replacement cost profit of $1.38 billion for the January-to-March period, falling short of analyst expectations of $1.6 billion, based on a consensus compiled by LSEG.

The figure was down sharply from the $2.7 billion reported a year earlier.

The result comes at a time of heightened scrutiny of BP’s direction and execution, with activist shareholders questioning its mixed record in balancing traditional oil and gas operations with a broader push into renewables.

The company’s Q1 performance fell roughly 10% short of forecasts, reflecting both industry headwinds and internal pressures.

BP share price fell by 3.8% following the announcement of the results.

Dividends hold, but buybacks slashed

While BP maintained its dividend at 8 cents per ordinary share, it sharply reduced its share buyback programme to $750 million, down from $1.75 billion in the prior quarter.

The company cited continued market uncertainty and weaker oil prices for the decision.

Net debt rose to $26.97 billion at the end of March, up from $22.99 billion three months earlier.

BP had warned investors of lower upstream production and rising debt in the first quarter, with the numbers now confirming those expectations.

Analysts at RBC Capital Markets said the results reflect soft earnings in BP’s gas and low-carbon division, while noting that cost control in other areas helped partially offset the miss.

Giulia Chierchia-architect of renewables pivot exits following pressure from Elliott

As part of its broader strategic overhaul, BP also announced the upcoming departure of Giulia Chierchia, the executive vice-president of strategy and sustainability.

She will leave her post on June 1, with the role itself being abolished.

Chierchia was a central figure in BP’s shift toward low-carbon energy investments during the past few years, a direction that drew both praise and criticism.

Her exit follows growing pressure from activist investor Elliott Investment Management, which has called for changes in BP’s leadership and greater accountability over its strategic missteps.

BP said her responsibilities would be folded into other business areas to “enable quicker decision-making and clearer accountabilities.”

Fall in upstream production to limit boost to earnings in 2025: analysts

BP is making strong progress in its oil and gas division but it will take time for new production to boost earnings, Derren Nathan, head of equity research at Hargreaves Lansdown, wrote.

BP has three new start-ups and six discoveries in the pipeline but upstream production is still set to fall this year, he added.

Nathan noted that BP’s downstream division, which includes refining and marketing, is performing more strongly.

However, weak oil prices and rising debt levels mean the company must work harder to meet investor expectations.

Nathan added that BP’s target for asset disposals—now set at between $3 billion and $4 billion—may not be enough to significantly dent its $27 billion net debt.

He cautioned that more decisive cost-cutting measures could be on the horizon.

“The company is making impressive progress, but it’s a slow process and the difficult macroeconomic backdrop makes it challenging,” he added.

Balancing legacy energy with a changing market

The first-quarter results underscore BP’s struggle to balance its traditional oil operations with the demands of an energy transition.

In February, the company made a decisive shift back toward hydrocarbons, pledging to cut renewable spending in favour of increasing annual investments in oil and gas.

Still, CEO Bernard Looney faces pressure from both investors and the broader market to demonstrate that BP can maintain shareholder returns while managing its debt and navigating a volatile energy landscape.

The company will next provide financial guidance when it reports second-quarter results later this year.

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The ARKK Innovation ETF (ARKK) stock price has rebounded over the past few weeks as trade jitters have eased. After falling to a low of $38.65 earlier this month, it has bounced back to $51, and is hovering at its highest level since March 26. This article explains whether Cathie Wood’s flagship fund is a good investment.

ARKK ETF is expensive for no reason

The ARKK Innovation ETF is the flagship one by Cathie Wood, a popular figure in the financial market. It has over $4.5 billion in assets, which is significantly lower than its peak of over $13 billion. It is an actively managed fund that charges customers a whopping 0.75%. In contrast, popular ETFs like the Vanguard S&P 500 (VOO) and iShares (S&P 500) charge investors just 0.03%. 

Therefore, an ARKK investor with $10,000 will pay Cathie Wood $75 and Vanguard and BlackRock just $3 for the same investment. At times, it makes sense to pay a premium for a unique exchange-traded fund (ETF) that offers unique features and performance. 

For example, an ETF like the JPMorgan Nasdaq Equity Premium Income (JEPQ) charges 0.35%, which is a reasonable fee because it pays investors a double-digit yield by using the covered call strategy. 

Also, it is also reasonable to pay a premium for an ETF that outperforms benchmark assets like the Nasdaq 100 and the S&P 500 indices. ARKK does not do that and has a long history of lagging these assets. 

For example, the fund’s price return in the last five years was minus 5.20%, while the Invesco QQQ (QQQ) and the SPDR S&P 500 (SPY) rose by 123% and 92%, respectively. Keep in mind that the other two funds have an expense ratio of 0.25% and 0.09%, respectively. 

Why ARKK ETF stock is rising

The ARKK ETF stock has jumped recently as many technology companies rally. Tesla stock price has jumped by over 32% from its lowest level this year after Elon Musk said that he would refocus on the company. He made this statement last week, following the company’s publication of weak financial results. 

Still, analysts caution that Tesla faces more challenges than opportunities in the past. The most significant factor is that its business is facing real competition from Chinese brands such as XPeng, BYD, and Li Auto. These companies are becoming more innovative than Tesla, especially in the battery technology.

Palantir stock price has jumped by over 73% from the year-to-date low, and is nearing its all-time high of $125. The risk, as we have written before, is that Palantir seems to be highly overvalued, considering that the AI bubble seems to be bursting. 

Coinbase stock price has jumped by over 44% from the lowest swing this year. As we wrote recently, it has formed an inverse cup and handle pattern, pointing to an eventual retreat in the coming weeks.

The other top companies in the ARKK ETF, like Roku, Roblox, Tempus AI, CRISPR Therapeutics, Robinhood, and Archer Aviation, are all risky. 

Summary 

ARKK ETF had a nice run during the pandemic as it trounced popular funds like those tracking the S&P 500 and the Nasdaq 100 indices. Since then, however, the gains have been weaker, confirming the view that active funds underperform their passive counterparts.

While Cathie Wood’s ETF will occasionally outperform the benchmarks, the long-term trend is that it will generally lag behind them. As such, most experts recommend allocating their funds in these traditional funds since they are cheaper and have a long track record of performance.

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