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Is TDOC a takeover target of AMZN?

Long
NYSE:TDOC   TELADOC HEALTH INC
For all fundamental reasons the success of Teladoc is noble but you can see from this accumulation/distribution chart that someone is heavily accumulating the stock. There are multitude of reasons this could be happening. One super exciting and others very typical of trading in growth companies.

So let's start with my far flung idea. Amazon is pushing aggressively to get into the healthcare space. There was talks of Amazon buying a large insurance provider such as Aetna. A much more reasonable acquisition, and one that would be the perfect fit to stair-step them into the space is Teladoc. Teladoc conducts medical exams entirely online and over the phone. They boast almost 20 million customer accounts around the world and have an opportunity in the U.S. alone to do at least 75 times their current volume of consultations. What better place for people to find that than the Wal-mart of the online world. Amazon. For that matter if Wal-mart took notice they would also be a suitor.

Catalyst 2: Short interest. For a long time short traders were rooting for Teladoc to fail because they were spending heavy to acquire competitors and pushing growth over all else. Well those bets have not paid off at all. As a matter of fake with an estimated 38% of the float short we could see a short squeeze for the record books playing out before our eyes.

Catalyst 3: The future prospects for TDOC without it being sold. Even with no buyer TDOC has grown over 100% this year with their own internal marketing push and the acquisition of their second biggest competitor. They are insurmountably the leader of the pack in tele-medicine. They are the uber of doctors if you will. They are in the critical mass stage. Twenty million customers turns into 50 million real fast when people start to tell their friends how their doctors 'visit' fell from $160 to $40. There is no doubting it is a disruption of the mega status quo and several of those companies have gone on to be worth 60-100 billion dollars. That is a 30x-50x from today's 3.8 billion dollar value.

*** These opinions are my own and not meant to be financial advice. I am currently long TDOC calls.
All ideas are based on my own research. As always I recommend you take the time to do diligence on your investments to make sure they match your risk and objectives.

Comments

I initially bought into TDOC as a pandemic play... After the recent acquisition and drop in price I went in much larger for a longer term play. I never understood the sell off. 10yrs from now TDOC will almost certainly be 10x where it is today or it will be a buy out target like you mention. Either way it's a win-win holding this company. Hard to see any long term downside
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