COVID-19 has seen an increased demand for virtual consultations with health practicioners and this is expected to grow at a substaintial rate in the coming years. In theory it seems that companies like DOC will continue to benfit from this trend.
However I think that DOC it will struggle in the upcoming years,
Firstly DOC has numerous competitors who already have a large market share in virtual consultations, with medium to long term contracts already being implemented in large healthcare networks. Given these systems have already been established, doctors have been trained and software has been purchused, i think it will be be difficult for DOC to integrate into this space. Therefore DOC will then have to expand into smaller centres, burning through large volumes of cash to win smaller contracts
Secondly (And I think this is the big one), Virtual telehealth consultations are not what patients want. They want a trusted healthcare profession with face to face interactions. The large majority of patients are elderly, who struggle with technology and often are hearing/visually impaired. Therefore the largest potential users of this services are not likely to want to use it
Hence DOC is left with a small peice of the pie that will be difficult to expand and grow in the coming years. Is not currently a buy recomendation from me
Disc - I do not hold