Teladoc Falls On Amazon Telehealth Report: What Investors Should Know

Teladoc Health TDOC is falling with news out that Amazon.com AMZN is entering the telehealth space.

What Happened: Business Insider is out with a report Wednesday that Amazon is working on efforts to build a national telehealth business.

The efforts would be geared toward big employers; Zillow Z is one of the companies mentioned. 

Called Amazon Care, the service is partnering with Care Medical. Employers who are near Amazon headquarters could get online and in-person doctor visits as part of the plan. Employees elsewhere would get virtual offerings from the plan.

Amazon did not comment on the rumor and provided the following statement to Business Insider.

“We do not comment on rumor or speculation. Amazon Care is a healthcare benefit pilot for Amazon employees in the state of Washington.”

Related Link: Cathie Wood Increases Teladoc Holdings Across Ark ETFs

Why It’s Important: Shares of Teladoc are up over 130% in 2020. The company completed an $18.5-billion merger with rival Livongo Health. Teladoc is the largest pure-play telehealth company.

Shares of Teladoc are under pressure, as Amazon’s entry could put pressure on its market position. Amazon has a wide base of customers it could market to with a telehealth service.

In November, Amazon announced its plans for Amazon Pharmacy. This service would see drug delivery in 48 states, with discounts to Amazon Prime members.

Price Action: Shares of Teladoc are down 5.1% to $186.01 at last check Wednesday. Amazon shares were up 1.85% at $3,223.56.