Given the incredible surge in popularity in telemedicine–which was on the rise before the COVID-19 pandemic and has since been boosted through its duration–Parsimony Limited is heavily investing in Amwell (AMWL) on behalf of our clients, acting as broker and principal on the transactions. Already a leader in telehealth, Amwell has shown throughout the pandemic that it is up to the task of providing ongoing telehealth services through whatever circumstances the future may bring.
As an originator in the telehealth space, Amwell has a long track record of not only outstanding service to the patients that use its platform, but also providing excellent results to its partners as they employ the platform in a hybrid care model. These partners number 2,000 and counting, including such notable healthcare brands as the Cleveland Clinic and the medical systems of the Pennsylvania State University, University of Wisconsin, and University of Virginia. Providing even more opportunities for these world leaders in healthcare services to impact their patients’ lives has been a cornerstone of Amwell’s service since its inception.
These healthcare providers are not the only notable partners that Amwell has impressed. As part of its continuing expansion strategy, Google invested $100 million in the company. This significant investment shows that not only is telehealth a top-tier growth market, but that Amwell is primed to be a leader throughout its progression.
Telehealth Is Here To Stay
While there have been concerns that telemedicine is a bubble based on its rise to prominence during the pandemic, the numbers tell a different story. The CAGR of the telehealth industry is 27.7%, far outpacing numerous other tech investments. Furthermore, telehealth use was already on an upward trend even before the COVID-19 pandemic. Regardless of the extenuating circumstances, telehealth is just plain good business for healthcare providers. It enables patients and their caregivers to access live consultations 24/7, reduces overhead, and exponentially increases the number of patients that can be seen in a given day. It also fits in seamlessly with the hybrid treatment plans that are becoming more popular in chronic illness management, where a patient can do regular checkups with a medical professional to report progress and changes in symptoms, and only be required to visit a clinic in person when certain procedures are nessesary.
As an individual telehealth stock, AMWL presents an outstanding opportunity. On their platform, Amwell hosted 1.4 million virtual visits in September of 2020–at a time when many restrictions were newly lifted around the country. This is a strong indicator that people who had been introduced to telehealth during the pandemic experienced something they liked and want to continue, rather than using it solely because it was the only option. A 500% increase in visits cannot be attributed to the pandemic alone.
Surprisingly, Amwell stock remains underappreciated. Though it stands out technically as a long-term hold, Parsimony Limited (along with many other investors) is still of the mind that AMWL is considerably undervalued–especially when compared to its competitors in the telehealth space. AMWL recently peaked just above $40, whereas Teladoc (TDOC), its closest competitor, trades around $170 and is believed to be overvalued. Despite its recent volatility, Amwell is the far better value by comparison. It is for these reasons, and plenty more, that Parsimony Limited has advised its valued customers to add AMWL to their portfolios, and executed these transactions, acting as principal, on their behalf.
About Parsimony Limited
Parsimony Limited, an affiliate of Global Custodian Solutions, is an investment advisory firm operating out of the Channel Islands in the United Kingdom. Known worldwide for our expertise in direct client advisement and portfolio management, our specialty is seeking out high-potential assets with limited downside risk. As a broker and advisor, Parsimony not only guides our members towards the investments that will suit their strategy and goals, but also serves as the broker for these transactions, acting as the principal on these trades on our clients’ behalf.