A Teladoc member visits virtually with a doctor.
Courtesy of Teledoc
Cathie Wood’s ARK Invest and other institutional investors were slated to take a steep hit as shares of Teladoc Health plummeted more than 45% on Thursday following a deeper-than-expected earnings miss and guidance cut.
Teladoc (ticker: TDOC
) posted a loss of $41.58 a share for the first quarter — significantly wider than analysts’ forecasts for a loss of just 60 cents. The company also revised its revenue expectations for the year down to a range between $2.4 billion and $2.5 billion, under previous guidance for $2.55 billion to $2.65 billion.
Teladoc is the ARK Innovation ETF ’s (ARKK) third-largest holding after Tesla ( TSLA
) and Coinbase ( COIN
), with a nearly 7% weight worth over $632 million as of Thursday morning, according to FactSet.
The remote healthcare company also has a 7.4% weighting in the ARK Genomic Revolution ETF (ARKG), a 5.6% weighting in the ARK Next Generation Internet ETF (ARKW), and 4.3% in the ARK Fintech Innovation ETF (ARKF).
That means that Thursday’s steep decline in Teladoc won’t be taken lightly by investors, even if enthusiasm over tech-sector earnings could help recoup some losses. The ARK Innovation ETF was down 2.4% on Thursday, while the Genomic Revolution ETF was dropping 3.2%. The Next Generation Internet ETF fell 1.2% and the Fintech Innovation ETF declined 0.4%.
ARK isn’t the only fund that owns Teladoc, but it is by far one of the largest and most bullish. ARK’s position in Teladoc has increased exponentially since August 2020, with the Innovation ETF’s position reaching a peak in February 2022.
The Credit Suisse Digital Health Equity Fund has also snapped up shares over the last year, making Teladoc 3.2% of its portfolio. The fund has yielded a loss of 6% over the last month, and about 24% year to date, according to Morningstar.
Teladoc makes up 1.7% of the Baillie Gifford Positive Change Fund, and 1.4% of the BNY Mellon Small/Mid Cap Growth Fund.
Write to Sabrina Escobar at [email protected]
