AMWL Stock Forecast & Price Target

American Well Corp has demonstrated a robust growth trajectory, evidenced by a remarkable 29.4% year-over-year increase in higher-margin subscription revenue, particularly in its Digital Health Accelerator (DHA) programs. The company's adjusted EBITDA loss of ($12.2 million) was notably better than expected, surpassing guidance and consensus estimates significantly, which underscores operational efficiencies and cost management. Furthermore, with anticipated enterprise rollouts of automated programs and digital behavioral health initiatives, American Well projects a sequential increase in subscription revenue for the upcoming quarters, reinforcing its positive outlook.

American Well Corp's financial outlook reflects significant challenges, as evidenced by a projected decrease in general and administrative expenses (G&A) for CY25, estimated at $90.8 million, which represents a larger decline of 25.1% year-over-year compared to the company's more conservative guidance of 20.0%. Additionally, the company is anticipating a substantial reduction in sales and marketing (S&M) expenses, projected at $54.8 million for CY25, marking a 28.2% decline year-over-year. These declining expense metrics suggest heightened operational pressures and a potentially diminishing market presence, contributing to a negative outlook for the company's stock.