Teladoc

Telemedicine vendor Teladoc is acquiring InTouch Health, a competitor, for $600 million.  For that price it gets only about $80 million in revenue.  This is a typical trajectory and one that should concern investors.  Telemedicine has potential and can add value to the system but it is highly hyped.  So companies feed on that hype, get a high value, can't really generate the revenue, or certainly the profit expected, and then start doing acquisitions to divert attention and try to create something that can generate a return.