Shares of Teladoc Health (NYSE: TDOC) jumped on Tuesday, rising about 6% as of 1:30 p.m. EDT.
The tech stock's gain follows news that President Donald Trump has signed an executive order to expand telehealth services -- a move that could benefit telehealth specialist Teladoc.
The executive order focuses primarily on expanding benefits to Americans in rural communities. Further, the move will make some recent telehealth efforts under the Trump administration permanent, going beyond the implementations that were specifically for the COVID-19 pandemic.
"These telehealth expansions build on the work the Centers for Medicare and Medicaid Services has done during the public health emergency to more than double allowable telehealth services, greatly expanding access to high quality care," read a press release from the White House this week.
Teladoc saw a surge in virtual visits during Q2, the company revealed in its second-quarter update on July 29. Total visits rose 203% year over year. COVID-19 accelerated adoption of virtual care, management said. But Teladoc also noted that demand remains elevated from levels before the coronavirus, even in areas in which COVID-19 cases have leveled off.
10 stocks we like better than Teladoc Health
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Teladoc Health wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of June 2, 2020
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.