in July, Amazon.com Inc. (NASDAQ: AMZN) San Francisco-based acquisition revealed One Life Healthcare Corporation (NASDAQ: ONEM) in a deal worth $3.9 billion. Investors jumped at the acquisition. 1Life Healthcare has been rebranded to One Medical, and One Medical’s stock price has increased 70% from about $10.50 to $17 on the announcement.
The stock has been relatively stable since July and is currently priced at $16.42. Trading volume expanded 6 times the average The result is a final decision on sales in the first week of the year, possibly in early December.
What is One Medical?
Now rebranded as: one medical, 1LifeMedical, is a technology-driven, membership-based primary care provider that blends face-to-face care with 24/7 virtual assistance. The company is also a workplace healthcare provider. The San Francisco-based company operates clinics in 21 cities, including Atlanta, Boston, Los Angeles, Denver, Chicago, Miami, New York, Phoenix, San Diego, Seattle-Tacoma and Portland.
this is Late January 2020 The IPO is 17.5 million shares of common stock at $14 per share, representing a valuation of approximately $1.7 billion based on the 122 million shares outstanding disclosed in the company’s SEC filings. By the end of that first trading session, One Medical closed at his $22.07. 57% premium higher than the original stock price. The company hit $60 in February 2021 and fell to $6.25 in mid-May 2022, establishing historic highs and lows for the stock, respectively.
What does Amazon want with One Medical?
One Medical may seem like a unique concept. However, the idea belongs to a growing community of health and wellness tech companies, many of which went public in 2020 (the same year as One Medical).This list includes Change Healthcare (NASDAQ: CHNG), Progyny Inc. (NASDAQ: PGNY), Livongo (NASDAQ: LVGO), Frecia (NYSE: PHR) When Health Catalyst (NASDAQ: HCAT).
One Medical is still not profitable despite growing membership (currently about 815,000 members, up 14% from last year). The company has delivered strong and consistent organic earnings growth since launch, as documented in its SEC filings. In the first nine months of 2019, top-line revenue nearly surpassed $199 million, an increase of approximately 29% from the previous year’s reported revenue of $154.6.
One Medical experienced a 20% year-over-year (YOY) revenue growth from $176.8 million to $212.7 million between 2017 and 2018. 64% year-over-year revenue growth from $380 million in 2020 to $623 million in 2021.
In the first week of the new year, stocks nearly 6 times the average, presumably because investors were thrilled with the sale’s completion. One Medical stock is already rising 6.62% over the last 52 weeks. However, the stock price is still in the red, Expected revenue increasesWhile the news is fueling the sector, One Medical still gets a ‘Hold’ rating from analysts. This may change by his February 22, 2023, the company’s next reporting date.
Has the One Medical purchase affected Amazon stock?
The recent summer announcements contributed to the stock’s surge. Stock prices soar from July 2022 About 35% to about $106 before another recession sets in. Amazon has yet to recover from this drop and is currently down to $89.20.
With that in mind, the stock most recently hit $81.86 on December 28, 2022, although the current price is not a 52-week low. Stocks fell again briefly at the beginning of the year, but have surged again. The tech giant’s stock could gain momentum since its acquisition of One Medical, which was eventually sold in early December.
Amazon’s stock price was $88.84 as of January 9, near its 52-week low ($81.43). Nearly 50% down from 52-week high ($170.83). Amazon also fell two cents short of his $0.22 earnings target for the fourth quarter. Tank share value increased by 13%so you need to start building momentum.
That said, Amazon (and its investors) have a lot to smile about. One has a stock price target of $147.12, up 70.9%. More importantly, revenue increased by more than 126%, and the deal suggests an immediate backing for the company as a tech giant. Expanding healthcare products.
But AMZN’s 81.54 Price Earnings Ratio suggests that the stock is overvalued, which may be the reason for the less enthusiastic ‘moderate buy’ rating.
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