Not only is this more interesting and fun as investors, but it allows me to research companies that are on my radar. I’m bullish on the electric vehicle sector, on fintech and digital payments, and big data analytics. But I also need to begin addressing companies I am bearish on. Any well-rounded investor knows that you can’t just buy any stock you hear about and expect it to go up. We do our research into the companies and the sector, and make our own decisions based on our due diligence. Here are two companies I am bearish on moving forward.
Teladoc Health (NYSE:TDOC): I have gone back and forth on Teladoc more than perhaps any other company. On the one-hand, the company was a first mover in telehealth and is revolutionizing the way we think about day to day healthcare. On the other hand, nothing about Teladoc’s technology really screams innovative to me. What is the company’s moat? If your corporate health insurance signs up with a different telehealth company, are you going to refuse to take the video call? No, of course not. I understand Teladoc’s popularity, and I know it has a strong portfolio of healthcare partners. But knowing that companies like Amazon and Apple are making a hard push into digital healthcare, Teladoc’s moat seems fragile to me. I love telehealth, and I truly believe that a majority of appointments can now be handled virtually, especially for things like prescription refills or routine check-ins. But that doesn’t mean I love Teladoc as an investment. The stock peaked at over $300 per share in February of this year, and in the five months since has lost nearly half of its value. This isn’t just an indication that the pandemic is coming to an end, as companies like DocuSign (NASDAQ:DOCU) are stronger than ever.
FuboTV (NYSE:FUBO): Tackling stocks with a loyal following is a sure way to get attacked on FinTwit or Reddit. Fubo is a popular stock amongst retail investors, but I see way too many illogical comparisons thrown around. Not all companies who stream are Netflix (NASDAQ:NFLX), and not all streaming platforms that offer select niches of channels are Roku (NASDAQ:ROKU). Is Fubo going to ever be like these two companies? I don’t generally like to say never for stocks, but I think the likelihood of that happening is next to none. Fubo will never receive exclusive rights to things like the NFL. It took years for the big leagues to begin partnerships with streaming companies and look who the NFL finally decided to go with: Amazon ($90.35|2.14%). There is also chatter about the sports betting platform being a hit. I’m sorry to say that I don’t think sports betting is ever going to be popular enough to send Fubo to the holy land. Also, the service itself is expensive. I’m not sure how many retail investors actually subscribe to Fubo but it costs $64.99 per month or $79.99 for the premium subscription. I think Fubo can get bigger from where it is now, but in my mind, there is no hard data to support comparisons to Netflix or Roku.