Spotting Winners: Teladoc (NYSE:TDOC) And Online Marketplace Stocks In Q4

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online marketplace stocks fared in Q4, starting with Teladoc (NYSE:TDOC).

Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.

The 12 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.2% since the latest earnings results.

Weakest Q4: Teladoc (NYSE:TDOC)

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Teladoc reported revenues of $640.5 million, down 3% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

“We had a solid finish to the year, both in terms of performance and advancing initiatives important to our future. Consistent with our guidance range, Integrated Care delivered revenue growth and strong margin expansion, and progressed well on key priorities, including the announced agreement to acquire Catapult Health. In BetterHelp, while we were pleased with the sequential improvement in key metrics in the fourth quarter, the operating environment continues to be challenging and we remain focused on actions to stabilize results consistent with our overall virtual mental health strategy,” said Chuck Divita, Chief Executive Officer of Teladoc Health.Teladoc Total Revenue

Teladoc delivered the slowest revenue growth of the whole group. The company reported 93.8 million users, up 4.7% year on year. The stock is down 19.5% since reporting and currently trades at $8.86.

Read our full report on Teladoc here, it’s free.

Best Q4: MercadoLibre (NASDAQ:MELI)

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

MercadoLibre reported revenues of $6.06 billion, up 37.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of unique active users estimates.

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MercadoLibre Total Revenue

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2,112.

Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.

Shutterstock (NYSE:SSTK)

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Shutterstock reported revenues of $250.3 million, up 15.2% year on year, falling short of analysts’ expectations by 1.5%. It was a softer quarter as it posted a decline in its requests and a miss of analysts’ EBITDA estimates.

As expected, the stock is down 17.6% since the results and currently trades at $20.14.

Read our full analysis of Shutterstock’s results here.

Etsy (NASDAQ:ETSY)

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Etsy reported revenues of $852.2 million, up 1.2% year on year. This print came in 1.2% below analysts' expectations. It was a softer quarter as it also recorded a slight miss of analysts’ number of active buyers estimates and a decline in its buyers.

The company reported 95.46 million active buyers, down 1.1% year on year. The stock is down 19.6% since reporting and currently trades at $46.07.

Read our full, actionable report on Etsy here, it’s free.

eBay (NASDAQ:EBAY)

Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.

eBay reported revenues of $2.58 billion, flat year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced EPS guidance for next quarter slightly topping analysts’ expectations.

The company reported 134 million active buyers, up 1.5% year on year. The stock is down 1.9% since reporting and currently trades at $67.79.

Read our full, actionable report on eBay here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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