Talkspace stock jumped more than 13% on Tuesday, September 17, following the announcement of a partnership with Amazon Health Services. Talkspace is set to become the first virtual behavioral health provider to have its services on the Amazon platform.
Details
On Tuesday, quotes on Talkspace surged 13.6% to $2.17 per share on the Nasdaq. The stock is off around 15% since the beginning of the year but still up 25% over the last 12 months.
Before the open on Tuesday, Talkspace announced a partnership with Amazon Health Services that it said aims to increase awareness of and access to online therapy and psychiatry services. Talkspace claims to be the first provider of these services to join Amazon Health Services.
About Talkspace
Talkspace is an online platform that offers services from 5,000 therapists. It partners with several insurance companies, including the government program Medicare, with more than 150 million people having Talkspace as a covered benefit. Users can access the platform from anywhere in the world either at no extra cost or for a small copay depending on the plan. In the first half of 2024, Talkspace reported $91.5 million in revenue, up by a third year over year.
In the U.S., around 60 million people, or 23% of the adult population, experience mental health issues, according to the nonprofit Mental Health America. One in five American children aged 12-17 has reported suffering from at least one major depressive episode in the last year, with about half of them not receiving treatment. Talkspace believes that the new partnership with Amazon will help patients discover, determine their eligibility for, and enroll in their Talkspace health insurance benefits.
Analyst recommendations
According to MarketWatch, four analysts cover Talkspace, with two “buys” and two “holds.” The average target price is $3.50 per share, indicating upside of more than 60%.
