Thursday's Pocket Change: A New Telehealth Superteam Has Formed
Plus, Fastly reveals its largest customer, worrying shareholders
Fastly and its Roller Coaster Ride with TikTok
Fastly stock has risen 362% in the past year and over 217% in the past three months. When the company reported a 65% growth in revenue year-over-year, you would assume the stock would see a nice bump. The opposite happened—it dropped over 14% in after-hours trading.
The main concern for the market was that TikTok was Fastly’s biggest customer, representing 12% of revenue this past quarter. Despite a seemingly inevitable deal from Microsoft to purchase the popular app and save it from President Trump’s hammer, nothing is a guarantee. TikTok could be banned in the United States by September 15.
We don’t know what will surely happen with TikTok until a deal does (or doesn’t) get done. Either way, Fastly saw a 6% rise in total customers and an 11.5% rise in money spent by enterprise customers since the first quarter of 2020. Losing TikTok’s business would hurt, but it wouldn’t completely kill Fastly.
If a deal for TikTok can be agreed upon soon, Fastly should see another sharp rise in its stock price.
Teladoc and Livongo Merge to Create Teleheath Superteam
Whether a person is sick with coronavirus or not, telehealth has been a very important part of this pandemic. Two key digital health companies, Teladoc and Livongo, merged Wednesday at an $18.5 billion value.
The companies complement each other well. Teladoc can provide review of a variety of medical issues, from serious conditions to a morning fever. You can meet with a doctor from your bed, simplifying the concerns of anything and everything related to an illness or condition. Livongo offers tracking technology to keep diabetes, weight, hypertension, and behavioral health in check.
Livongo customers will benefit from Teladoc’s ability to write prescriptions while Teladoc customers will see an improved ability to track and care for chronic issues.
Even after the pandemic clouds clear, telehealth will remain an important part of society. This merger may prove to be a key moment of growth as the segment matures.
Good info Dylan! However, I’m almost sure that you would like to be covering the Colts in camp at this time of year in a Covid-19 free country!!
So true.