We recently published a list of 10 Best Diabetes Stocks To Buy According to Billionaires. In this article, we are going to take a look at where Teladoc Health, Inc. (NYSE:TDOC) stands against other best diabetes stocks to buy according to billionaires.
The Growing Market and Innovation in Continuous Glucose Monitoring (CGM) Technology
The WHO estimates that 422 million people worldwide suffer from diabetes, with the majority residing in low- or middle-income countries. On average, diabetes directly contributes to 1.5 million deaths annually. Over the past few decades, there has been a steady rise in both the prevalence and the number of cases of diabetes. Nonetheless, the International Diabetes Federation estimates that 500 million people worldwide presently have diabetes, and that figure is predicted to increase by 25% by 2030 and 51% by 2045.
One medical device used to assist manage diabetes, both type 1 and type 2, is the continuous glucose monitor (CGM). The market has grown dramatically in recent years, and it is currently a rapidly expanding category of diabetes care equipment. The demand for advanced diabetes care goods, including insulin pumps, pens, and continuous glucose monitoring (CGM) equipment, was estimated by GlobalData to be worth $21.8 billion in 2023. GlobalData projects that the market will reach $33.4 billion in revenue by 2030, growing at a compound annual growth rate (CAGR) of 6.34%.
The GlobalData marketed products database shows that there are currently 97 products in the CGM category. Most of these devices are standard CGMs, with only a few being implanted sensors. 133 products are either approved or in the development stage, according to the GlobalData pipeline products database. The research indicates that this market niche is expanding quickly and is a hub for innovative new technologies like implantable CGMs.
Today, CGM technology incorporates AI. For example, Roche introduced Accu-Chek SmartGuide, a cutting-edge CGM gadget driven by predictive AI. At the launch, Julien Boisdron, Chief Medical Officer for Roche Diabetes Care, called it “a solution more than a CGM.” He described how the system, which consists of two algorithms and a sensor, aids in data visualization and prediction.
The Rise of GLP-1 Drugs: Opportunities, Growth, and Challenges
A new era of opportunity has arrived for the management of diabetes and its associated complications. These novel strategies can effectively treat the co-occurring conditions of obesity and diabetes. A class of drugs known as glucagon-like peptide-1 (GLP-1) agonists is used to treat obesity and type 2 diabetes mellitus (T2DM). By 2030, the GLP-1 market, which is equally driven by obesity and diabetes, is expected to grow to $100 billion. About 9% of Americans, or 30 million people, may be GLP-1 users by this point.
Twelve percent of adult Americans report having taken a GLP-1 drug at some point, according to the most recent KFF Health Tracking poll. In the previous five years, 22% of patients with a diagnosis of obesity or overweight also took GLP-1, while 43% of patients with diabetes had the drug. Adults who have heard “a little” or “a lot” about these medications have gone from 70% to 82% over the past year, while those who have heard “a lot” about them have increased from 19% to 32%.
However, problems have arisen due to the increased demand for these diabetes and weight-loss medications. An “explosion in the unlicensed sale of medication online” is a potential threat, according to the National Pharmacy Association (NPA). Semaglutides, which are sold under the brand name Ozempic, help persons with type 2 diabetes manage their blood sugar. However, in other countries, like the US, where they are sold under the name Wegovy, they are also commonly used to help people lose weight. NPA chairman Nick Kaye stated:
“Pharmacists remain deeply concerned that the current medicine shortages crisis could lead to an explosion in the unlicensed sale of medication online.”
Our Methodology
For our list, we selected diabetes-related stocks from the HRTS GLP-1, Obesity, and Cardiometabolic ETF, as well as the EDOC Telemedicine and Digital Health ETF. We then ranked these stocks based on the number of billionaire investors holding stakes in them, as per Insider Monkey’s database of Q4 2024, prioritizing those with the highest billionaire ownership.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Teladoc Health, Inc. (TDOC) The Best Diabetes Stock To Buy According to Billionaires?
A doctor wearing a face mask and lab coat providing remote medical advice via video chat.
Dollar Value of Billionaire Holdings: $212,636,151
Teladoc Health, Inc. (NYSE:TDOC), a leader in virtual healthcare, specializes in chronic disease management, particularly for diabetes. Its comprehensive diabetes program includes cellular-enabled glucose meters, personalized coaching from specialists, AI-powered tools for predictive insights, and digital platforms for tracking and engagement. The company primarily serves enterprises, insurers, and healthcare providers, integrating its services into wellness programs while also offering subscription-based plans and pay-per-visit models for individuals.
Teladoc Health, Inc. (NYSE:TDOC)’s Q4 2024 and full-year results, released on February 26, 2025, reflect a challenging period for the company. Revenue declined 3% year-over-year in Q4 to $640.5 million, while full-year revenue dipped 1% to $2.57 billion. The decrease was primarily driven by lower access fee revenue, with the BetterHelp segment experiencing a significant decline despite some growth in other areas.
The company’s profitability remains a concern, reporting a Q4 net loss of $48.4 million and a full-year net loss of $1.0 billion ($5.87 per share). This steep loss was largely due to a $790 million non-cash goodwill impairment charge related to BetterHelp, alongside restructuring costs and amortization expenses. Adjusted EBITDA also declined 35% in Q4 to $74.8 million and 5% for the full year to $310.7 million, signaling ongoing financial pressure.
Despite these challenges, Teladoc Health, Inc. (NYSE:TDOC) remains one of the best diabetes stocks, with its Integrated Care segment growing by 4% for the year and continuing to support chronic disease management, including diabetes. Its cash position remains strong at $1.3 billion as of December 31, 2024, though operating cash flow fell to $293.7 million from $350 million the previous year. BetterHelp revenue fell 8%, highlighting concerns about increasing competition in the virtual mental health space.
Looking ahead, the corporation’s 2025 guidance projects revenue between $2.468 and $2.576 billion, with adjusted EBITDA ranging from $278 to $319 million. The company anticipates a net loss per share of ($1.10) to ($0.50) but expects free cash flow to improve to $190-$220 million. Meanwhile, a new partnership with Amazon integrates Teladoc Health, Inc. (NYSE:TDOC)’s services with Alexa, which enhances accessibility and positioning the company to capitalize on digital health innovations.
Overall, TDOC ranks 9th on our list of best diabetes stocks to buy according to billionaires. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
