Stock Markets Climb Wednesday Morning; Why Traders Hate the Livongo-Teladoc Deal

Stock Markets Climb Wednesday Morning; Why Traders Hate the Livongo-Teladoc Deal

Investors have anticipated a painful earnings season because of the COVID-19 pandemic. To see things turn out better than expected, therefore, has given the stock market a shot in the arm. Markets got a further lift on Wednesday morning, especially with Walt Disney (NYSE:DIS) giving investors a positive surprise. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 284 points to 27,112. The S&P 500 (SNPINDEX:^SPX) rose 20 points to 3,326, and the Nasdaq Composite (NASDAQINDEX:^COMP) gained 29 points to 10,971. One company whose earnings report seemed to go unnoticed was Livongo Health (NASDAQ:LVGO). The diabetes glucose monitoring specialist announced another set of blockbuster results, but the news got overshadowed by an announcement that the high-growth healthcare stock had agreed to an acquisition by Teladoc Health (NYSE:TDOC). Both Livongo and Teladoc moved sharply lower in response as, at least in the short run, traders voiced their discontent with the strategic combination. Livongo's fundamentals are stronger than ever For investors who just looked at Livongo's second-quarter financial report, things looked great. The company continued its string of impressive performances, pointing to the sound fundamental business prospects for the provider of remote monitoring services for diabetes patients. Livongo's revenue jumped 125% from where it was 12 months ago, as a surge of new patients joined the service. Livongo now counts more than 410,000 members using its glucose monitoring, up 113% year over year. The company posted a minimal ...
More on: www.fool.com