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Teladoc implodes 48% after massive first-quarter loss, costing Cathie Wood's ARK more than $400 million

Posted by Matthew Fox on Friday, April 29, 2022 Under: TRADING FLOOR

  • Teladoc stock imploded 48% on Thursday after reporting a massive first-quarter loss and cutting its outlook.
  • Cathie Wood's Ark Invest built a $1 billion stake in Teladoc, making it the fund's second biggest position.
  • Ark is set to lose more than $400 million from its Teladoc position on Thursday.

Teladoc stock imploded by 48% on Thursday after the tele-health company reported first-quarter results that included a massive loss and weaker 2022 guidance.

The company reported a loss of $41.58 per share, which included a non-cash goodwill impairment charge of $6.6 billion, as well as stock-based compensation expenses of $60.4 million. In February, sources told Insider that Teladoc planned to announce a first-quarter goodwill charge related to its $14 billion acquisition of Livongo.  

  • Michael Burry warned markets would crash, predicted an inflation spike, and talked crypto in 2021.
  • "The Big Short" investor bet against Elon Musk's Tesla, slammed the GameStop saga, and sold stocks.
  • Here are Burry's six highlights of 2021.

Michael Burry helped pave the way for the GameStop short squeeze, bet against Elon Musk's Tesla and Cathie Wood's Ark Invest, and warned of a historic market crash last year.

The Scion Asset Management boss also called bitcoin a "speculative bubble," predicted inflation would soar, and sold most of his US stocks in 2021.

Burry is best known for his lucrative bet against the mid-2000s housing bubble. He was portrayed by Christian Bale in the movie adaptation of "The Big Short."

Revenue of $565.4 million represented year-over-year growth of 25%, but still missed estimates by about $3 million. Also hurting Teladoc's stock price was a reduction in its 2022 outlook.

"While we continue to see sustainable growth across our suite of products and services, we are revising our 2022 outlook to reflect dynamics we are currently experiencing in the direct-to-consumer mental health and chronic condition markets," CEO Jason Gorevic said.

Thursday's decline in Teladoc stock extends an already painful slump for the tech company, which was down 82% from its record high of $308 on Thursday. Now, including Thursday's dive, Teladoc stock is down 90% from its record high.

That's bad new for Cathie Wood's Ark Invest, who counted Teladoc as its second largest position across all of its ETFs as of Wednesday's close. Ark had built a more than $1 billion stake in Teladoc, and its conviction in the name hasn't waned despite the ongoing downtrend in the stock.

Ark Invest bought about 100,000 shares of Teladoc across its various ETFs as recently as Tuesday, and purchased more than 40,000 shares of the company on Monday, according to its daily trade updates. Ark Invest now owns more than 18 million shares of Teladoc, or about 11% of the entire company. That could make it difficult for Ark to exit its position, if it ever chooses to do so. 

Considering Ark's $1.03 billion stake in Teladoc on Wednesday, the disruptive growth investor is set to lose more than $400 million on Thursday.

Ark's flagship disruptive innovation ETF fell 7% on Thursday to $46.21, representing levels not seen since the onset of the COVID-19 pandemic.


Tags: teladoc implodes 48% after massive first-quarter loss  costing cathie wood's ark more than $400 million 

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