When Teledoc (TDOC) posted quarterly results in October 2021, the stock ended its run-up at around $160. Shares began a downtrend since then and face selling pressure. Roku (ROKU) and DocuSign (DOCU) are in similar patterns. When might they rebound?
TeleDoc will post around $2 billion in revenue for 2021. Visits of around 14.7 million in the year are up almost 39% from the previous year. That the stock fell from $300 does not suggest investors are getting a discount. Markets want the company to work through the Livongo acquisition first. The company must post strong membership growth momentum in 2022 to win back investors.
Roku stock is on a steep decline because the streaming box supplier faces slower growth. People spent most of their time watching content during the lockdown previously. Now that Omicron is a milder flu, countries will ease lockdown rules. Investors are shifting money out of Roku and into companies that produce content. For example, ViacomCBS (VIAC) is an attractive value holding.
Roku risks posting weaker user growth again in the next quarter. The stock may not rebound until the company reports growth higher than markets expect.
DocuSign shares lost half their value after the company admitted growth slowed in the last quarter. Investors no longer look at DOCU stock as offering substantial growth. DOCU stock is unlikely to recover until customer contract sizes rise in the coming quarters.