Telemedicine specialist American Well Corporation (AMWL) raised about $ 800 million when it went public last September. However, in recent months, shares have pulled back more than 70 % from their highs and were worth $ 11 in trading on May 17.
According to some investors, American Well (AMWL) cannot compete with Teladoc Health, the leader in the distance medicine market. It will not be able to fill its seats with a larger or smaller number of patients. It is probably true that this assumption is close to the truth at this point. However, the telemedicine market will continue to grow in the United States and other countries, which means Amwell has a lot of potentials.
Visitors (a critical factor in the industry) increased by 120 % to 1.6 million during the first quarter of 2021. American Well Corporation (AMWL) revenue in the past period increased by 13 % on a year-over-year basis to $24.6 million. According to the company, it has lost money since its beginning, and in the first quarter of 2021, it lost approximately 26 million dollars. Meanwhile, the company has about $ 996 million in cash, thanks to its successful IPO. The company’s subscription growth so far has not been significant, which has negatively impacted its quotes.
American Well’s business model varies from that of Teladoc, which is its main competitor. Amwell, for example, offers a platform that enables medical institutions and other organizations to provide telemedicine services, such as remote access to specialized specialists. Among the advantages of American Well’s software are scalability and ease of integration into existing business processes. For example, American Well offers specialized virtual treatments for conditions such as strokes and heart attacks. As American Well Corporation (AMWL) service offerings remain relatively unchanged, diversification is not yet significant. By modernizing the business in the right direction and investing cash wisely, it may strengthen its competitive position over Teladoc.