Technology major Amazon (NASDAQ: AMZN) recently revealed that the company will discontinue its telehealth service by the end of this year. This closure will follow the company’s acquisition of One Medical’s line of primary clinics for $3.9 billion last month.
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Telehealth Service Loses its Relevance for Amazon
The telehealth service was started as a part of Amazon Care for employees and businesses. The service was primarily used by Amazon workers. However, the company said that the business failed to meet the needs of its target customers. Additionally, it was unable to grow outside of its existing network of employees.
Meanwhile, employees who were impacted by the closure of the service may have the chance to work in other departments of Amazon’s Health Services.
Top Investors Remain Bullish About Amazon
Top investors remain confident about Amazon’s prospects, and they are loading up on the company’s stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Positive stance on AMZN. Further, 3.2% of the top portfolios tracked by TipRanks, increased their exposure to AMZN stock over the past 30 days.
Is Buying a Share in Amazon Worth it?
Overall, the consensus among analysts for Amazon stock is a Strong Buy based on 39 Buys and one Hold. The average AMZN price target of $176.04 implies an upside potential of 31.6% from current levels. Shares have declined 18.9% over the past year.
Final Thoughts
Amazon is optimistic about the healthcare sector. However, the closure of its telehealth unit reflects that it will not be easy for the tech giant to make a mark in this space.
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