Weekly Market Highlights (Babylon Health and Crowdstrike)
Telehealth is still on fire.
Babylon will merge with a special-purpose acquisition company (SPAC) created by Groupon’s former CEO and COO in a deal that would value the combined company at $4.2 billion. After the deal closes, Babylon would begin trading on Nasdaq under the stock ticker “BBLN.”
Babylon brings in most of its money through licensing fees for its digital health tools, per-member per-month prices for video visits, or capitated value-based care models.
Last year, Babylon brought in $79 million in revenue, nearly five times as much as 2019. But it also reported a widening net loss, which grew from $140 million to $184.7 million in 2020.
Telehealth is a crowded space globally. So who will grab the market share? Meanwhile, Walmart Health is moving full steam ahead with its virtual health offering after the acquisition of MeMD. Walmart Health will provide access to virtual care across the nation, including urgent, behavioral, and primary care, complementing their in-person Walmart Health centers.
Crowdstrike stock dips
Crowdstrike’s stock dip after a strong revenue growth announcement. The company grew its revenue by 70% and its customer base by 82%, which includes the acquisition of Humio. Looking at the chart, security vendors such as Palo Alto and Datadog all had similar trends in the last six months.