Teladoc Sees 12% Surge Amid Growing BetterHelp Web Traffic

2 min read | September 18, 2024 04:47 PM PDT | By Team Kalkine Media

Teladoc Sees 12% Surge Amid Growing BetterHelp Web Traffic — Image source: Shutterstock

Headlines

Teladoc Health's shares increased nearly 12%, driven by improved web traffic for its BetterHelp platform.
BetterHelp saw a 12% rise in web traffic during July and August 2024, signaling a reversal after a year of decline.
Higher traffic is anticipated to enhance user sign-ups and conversions, boosting the BetterHelp segment's performance.

Teladoc Health (NYSE:TDOC) saw its shares rise by almost 12% on Tuesday after a recent analysis by Jefferies led to an upward adjustment of its price target from $8 to $10 per share. This surge was fueled by an increase in web traffic for BetterHelp, Teladoc’s mental health platform, signaling a shift after a year of declining user activity. Jefferies noted a 12% increase in traffic to the platform in July and August 2024.

Although the recent performance suggests a positive outlook for BetterHelp, there are still some questions about Teladoc’s overall long-term growth. In the second quarter of 2024, the platform experienced a 14.5% drop in paying users year-over-year. However, the current rise in web traffic is expected to lead to more user sign-ups and conversions, positively impacting the BetterHelp segment moving forward.

Jefferies remains confident about the short-term developments of the BetterHelp platform but advises against relying too heavily on ambitious EBITDA expectations. The ongoing increase in user engagement could provide a much-needed boost for Teladoc, improving the company's performance in its digital health offerings.

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