American Well Corp AMWL shares are trading higher Thursday following reports that Amazon.com Inc AMZN plans to shut down its telehealth business, Amazon Care.
Amazon will pull the plug on its telehealth service on Dec. 31. The Washington Post reports that individuals working at Amazon Care learned of the planned shutdown in a meeting Wednesday, citing two people with knowledge of the matter. Workers were reportedly told Amazon plans to shut down the service because some of its corporate customers aren't getting any value from the service.
Other reports indicate that an internal e-mail was leaked, but the reasons for the shutdown appear to be similar. The e-mail shows that Amazon decided to end the service after determining it wasn’t "the right long-term solution for our enterprise customers," Amazon Health Services lead Neil Lindsay reportedly wrote in the company e-mail.
"This decision wasn’t made lightly and only became clear after many months of careful consideration. Although our enrolled members have loved many aspects of Amazon Care, it is not a complete enough offering for the large enterprise customers we have been targeting, and wasn’t going to work long-term," Lindsay reportedly said.
American Well is a telehealth company enabling digital delivery of care for its customers.
AMWL Price Action: American Well has a 52-week high of $6.30 and a 52-week low of $2.52.
The stock was up 4.85% at $4.65 at press time, according to Benzinga Pro.
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