Shareholders in American Well Suffer Losses After Year of Investing in Stock Market
July 19, 2023
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American Well ($NYSE:AMWL) is a Boston-based telehealth company that connects patients with healthcare providers over the internet. The stock has become increasingly popular as telehealth has become a major component of the healthcare industry.
However, shareholders who have invested in American Well over the past year have suffered losses. Although it is possible for any stock to lose value, this decrease in stock prices has been a major blow to investors. The losses incurred by investors in American Well have been a major disappointment, as the stock had seen impressive gains during the year prior to the losses. This downturn in value highlights the unpredictable nature of stock market investing, and serves as a reminder that losses are an inevitable part of investing.
Stock Price
On Monday, AMERICAN WELL stock opened at $2.1 and closed at $2.2, representing an increase of only 3.8% from the prior closing price of 2.1. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American Well. More…
| Total Revenues | Net Income | Net Margin |
| 276.96 | -598.08 | -144.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American Well. More…
| Operations | Investing | Financing |
| -159.28 | 89.92 | 5.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American Well. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 850.5 | 136.23 | 3.84 |
Key Ratios Snapshot
Some of the financial key ratios for American Well are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.0% | – | -98.3% |
| FCF Margin | ROE | ROA |
| -63.7% | -19.4% | -20.0% |
Analysis
At GoodWhale, we conducted an analysis of AMERICAN WELL‘s wellbeing. Using the Star Chart, we found that AMERICAN WELL is strong in asset and growth, but weak in dividend and profitability. We concluded that AMERICAN WELL is classified as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be interesting to investors who are looking for higher returns or want to diversify their portfolio. Although AMERICAN WELL has an intermediate health score of 5/10 considering its cashflows and debt, it is likely to safely ride out any crisis without the risk of bankruptcy. More…
Peers
The company offers a wide range of services, including primary care, urgent care, behavioral health, and more. American Well also provides care coordination and care management services. The company’s competitors include Mednow Inc, Think Research Corp, and InnovAge Holding Corp.
– Mednow Inc ($TSXV:MNOW)
Mednow Inc. is a medical technology company that focuses on delivering innovative and convenient healthcare solutions. The company’s products and services include online medical consultation, telemedicine, and home health monitoring. Mednow Inc. has a market cap of 6.69M as of 2022 and a ROE of -57.05%. The company’s products and services are designed to improve access to care, increase patient engagement, and reduce costs.
– Think Research Corp ($TSXV:THNK)
Think Research Corp is a healthcare technology company that provides software and services to help healthcare organizations deliver evidence-based care. The company has a market cap of 21.55M and a ROE of -47.72%. Think Research Corp is headquartered in Toronto, Canada.
– InnovAge Holding Corp ($NASDAQ:INNV)
InnovAge Holding Corp is a holding company that provides senior living and health care services through its subsidiaries. The company has a market capitalization of 951.7 million as of 2022 and a return on equity of -0.87%. InnovAge Holding Corp’s subsidiaries provide a variety of services including assisted living, skilled nursing, and memory care. The company’s assisted living facilities provide residents with 24-hour supervision and assistance with activities of daily living such as bathing, dressing, and eating. The company’s skilled nursing facilities provide residents with around-the-clock nursing care and rehabilitation services. The company’s memory care facilities provide specialized care for residents with Alzheimer’s disease, dementia, and other forms of memory impairment.
Summary
Investing in American Well can be a lucrative opportunity for shareholders, as the stock price has risen over the past year.
However, given that investing in the stock market often involves taking on some risks, there is always the possibility of losses. Analyzing American Well is important in order to make an informed decision and assess one’s own risk tolerance. Investors should consider factors such as industry trends, company performance, and news developments when performing their due diligence.
Additionally, keeping a watchful eye on American Well’s competitors and the overall market can also help to make effective investment decisions.
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