Webmd Health Corp (NASDAQ:WBMD)

CAPS Rating: 2 out of 5

The Company is a provider of health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals and health-focused publications.


Player Avatar TornettaJ (< 20) Submitted: 2/24/2013 10:55:30 AM : Outperform Start Price: $21.66 WBMD Score: +14.91

2012 was a terrible year for WebMD, their stock was crushed due to poor revenue from weak ad spending and added competition from Mayo Clinic. It's only a matter of time before other major players, such as Google, Walgreens, etc enter this space to add on to the pressure.

They did have a saving grace recently when they reported higher than expected earnings, in the range of $132.7 million causing their share price to spike 25%. Traffic to their service also spike, perhaps due to the flu scares, but also due to a more health conscious community. People in general are more health savvy and more cautious of doctors. Having this information available on phones, tablets, etc helps folks make informed decisions before breaking out the medical card.

The company is still seeing a loss, though one much smaller than anticipated. With Cavan Redmond now the CEO, his focus is on reducing and reversing those losses, making the company more nimble, and increasing offerings to their clients.

My prediction is this will be a rocky road, very volatile, but they have a long standing brand name and mature service that new competitors may not come to market with giving them at least the short term advantage. In the end I think with a focused new CEO WebMD can defend their turf and pull out ahead.

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