- 1 BetterHelp, Teladoc Health Inc.’s subsidiary, reached an FTC settlement earlier this month.
- 2 TDOC stock price consolidated for almost a year, showing no signs of improvement.
- 3 TDOC stock price lost 1.10% in the intraday session.
TDOC stock price continues to move in a prolonged consolidation phase, which was amplified after a negative earnings report and the FTC settlement. The virtual health company, Teladoc Health Inc., faced a Federal Trade Commission (FTC) settlement, after it denied accusations.Telehealth services boomed during the pandemic. Teladoc’s revenue grew from $553 million in 2019 to $2.4 billion in 2022. Teladoc Health inc. bought BetterHelp for $4 million in 2015.
FTC Accuses Teladoc
The FTC is cracking down on telehealth companies for their data-sharing practices. Earlier this month, the FTC accused BetterHelp, a subsidiary of Teladoc Health Inc., of allegedly sharing client data, including sensitive mental-health information, with social-media companies, over a three-year span.
BetterHelp was accused of sharing sensitive data with third parties such as Meta Platforms Inc.’s (META) Facebook, Pinterest Inc. (PINS) ans Snap Inc.’s (SNAP) Snapchat. These social media companies could target ads to their customers using the medical data. The data was compromised even after BetterHelp promised to keep such data private.
BetterHelp reached a settlement, and would be required to pay $7.8 million to consumers to settle the case. The money will be used to provide refunds in parts to people who signed up and paid for BetterHelp services from Aug. 1, 2017 to Dec. 31, 2020. The Teladoc subsidiary confirmed to have reached a settlement with FTC, but denied any wrongdoings.
TDOC Stock Price Action
TDOC stock price has been consolidating for over a year, and has lost 64.12% in that duration. The price faced rejection near the distribution zone several times. The current price of $24.26 tests the support near $22.35, but the testing may fail, as it shows no signs of improvement in the future. The over-powering bears pushed TDOC stock price into a range-bound movement. The volume records non-existent participation from both buyers and sellers.
TDOC stock price reclaimed the declining streak, and moved sideways near the support. The price action shows the rarest chance of a rally in future, but if it witnesses a bullish breakout, it can hardly breach the 0.236 and 0382 Fib retracement levels. The RSI moves in the 40-range suggesting bearish influence. The MACD forms a positive cross but records minimal buying action.
Conclusion
TDOC stock price continues to consolidate and shows no signs of recovery. The negative earnings and the FTC settlement tightened the bear-grip over Teladoc Health stock price. Holders could keep an eye on the demand zone, to trace chances of a rally. TDOC stock price lost 64.12% in over a year, and has been under consistent bearish influence.
Technical levels
Support levels: $22.35 and $15.55
Resistance levels: $35.70 and $44.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.