Buy Teladoc: AI Will Likely Spur Healthcare Deflation

Summary

  • Aging demographics and rising healthcare costs are major concerns for the global economy.
  • Artificial Intelligence has the potential to significantly reduce healthcare costs and improve diagnosis and treatment plans.
  • Teledoc, in partnership with Microsoft, is well-positioned to utilize AI and become a leader in bringing down healthcare costs.
  • I rate TDOC a strong buy at current price levels.

Medical technology concept

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The first step in my investment process is to identify secular trends. One of the biggest secular trends on the planet is aging demographics.

As populations get older, national healthcare expenses increase. The four largest economies, the United States, European Union, China and Japan are

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Kirk Spano is the founder of Bluemound Asset Management, LLC and has managed money for a wide range of clients since 1995. His passion is helping hardworking people make more money with less risk. Kirk’s investing group Margin of Safety Investing features his stock and ETF focus lists, trade alerts, option selling for income and macro analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TDOC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

We own shares and are actively selling cash-secured puts.

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