Why Teladoc Health Stock Jumped 15% This Morning

Group 1 - Teladoc Health's shares experienced a significant increase, peaking at a 15.2% rise, following bullish comments from Citron Research, a noted short-seller [1][3] - Citron Research predicts substantial growth in the telehealth industry, driven by advancements in artificial intelligence (AI) and the potential end of the government shutdown, which they see as a catalyst for Teladoc's stock price [3][8] - Despite the recent stock price increase, Teladoc's shares have declined 66% over the past three years, indicating a long-term downward trend since reaching nearly $300 in February 2021 [5][8] Group 2 - Teladoc's current valuation is attractive, with a price-to-sales ratio of 0.66 and strong free cash flow generation of $292 million on $2.54 billion in sales over the last four quarters, suggesting it may be undervalued [6][8] - The stock is trading at just 5.3 times its free cash flow, which is considered a bargain by some analysts [6] - Citron's assertion that the end of the government shutdown will significantly boost Teladoc's stock is viewed as questionable, although the company's valuation merits consideration for potential investment [4][8]