Virtual Healthcare Provider Teladoc health TDOC was a popular stock pick by cathie wood, CEO of Invest Ark. After shares fell 18% Thursday on second-quarter financial results, Wood defended the election and bought the downside.

What happened: Teladoc Health shares fell Thursday after second-quarter results. The company reported second-quarter revenue of $592.4 million, up 18% year over year and beating Street’s estimates.

Investors were unfazed by the company’s forward guidance, sending shares lower after the report. The company expects fiscal year revenue at the low end of its revenue guidance of $2.4 billion to $2.5 billion.

“While we continue to see heightened uncertainty in the macroeconomic environment, we remain confident in our ability to execute on our strategy,” said Teladoc CEO Jason Gorevic said.

Related link: Why Teladoc Healthcare Stocks Are Down Today

Wood defends and buys more: A weekend email will be sent out with comments on positions in the Ark Invest ETFs moving in double digits during the week. Teladoc was one of the stocks covered in the report, with Wood saying investors may be underestimating the company.

“We believe that other investors are concerned that Teladoc will not be able to deliver the steep increase in EBITDA that it had forecast for the fourth quarter,” Wood said. “We estimate that Teladoc will need to generate 43% of its annual EGBITDA goal from less advertising during the vacation quarter.”

Wood points out that Teladoc generated 48% of its annual EBITDA in the fourth quarter of 2019.

“We note that most key operating metrics during the quarter have validated our long-term thesis that Teladoc will become a leading corporate partner for the delivery of hybrid care in the United States and perhaps elsewhere.”

Wood notes that Teladoc’s second-quarter membership growth and chronic care enrollment exceeded analysts’ expectations.

“Today, 30% of chronic care workers use…