Shares of telemedicine provider Teladoc (TDOC) - Get Report  were lower on Wednesday in the wake of Amazon's (AMZN) - Get Report plan to enter the field. The stock was trading 4.3% lower at $67.95.

The Purchase, N.Y., company's provides services for both non-urgent needs, like the flu, and complex medical conditions, like cancer and congestive heart failure, its website states.

The e-commerce giant, on Tuesday disclosed a similar health-services pilot program for what Credit Suisse said would be some 53,000 employees and their families in the Seattle area.

Its website urges the company's staff to go there first for attention to colds, allergies, infections and minor injuries, sexual-health services, and preventive care like consultations, vaccines and lab tests.

The services are delivered via chat, video and in-person visits, and offers courier deliveries of prescribed medications.

SVBLeerink analyst Daniel Grosslight reiterated his outperform rating and $90 price target on Teladoc.

He and other analysts note that Amazon's project is not a surprise since it has been building physical clinics and hiring medical professionals for some time.

He says Amazon is likely "to partner with vendors like Teladoc rather than manage a virtual provider network itself." He says this model would create "a major new source of revenue for telehealth vendors."

"While we acknowledge the negative perception Amazon entering virtual health may cause, ... increasing virtual-health access will benefit Teladoc and the other telehealth providers," he said.

"And we would not be surprised if Apple (AAPL) - Get Report and Google (GOOGL) - Get Report offer similar solutions in the not-too-distant future."

Credit Suisse analyst Jailendra Singh says Amazon's program poses no immediate threat to the incumbent telemedicine companies since for now it's offering the plan only in-house. And he also wonders whether Amazon would cooperate or compete in telehealth.

In any event, he says that having "a credible player such as Amazon successfully adopt and execute a telemedicine program would only improve the adoption and acceptance of telemedicine tools across various stakeholders in the care continuum."

Singh has an overweight rating on Amazon shares with a $2,225 price target.

At Canaccord Genuity, analyst Richard Close reiterated his buy rating and $95 price target on Teladoc.

"We would use any weakness in Teladoc shares as a buying opportunity," he wrote.

The Amazon news "is likely to unsettle some investors," he said. But virtual care "remains in the early stages and Teladoc continues to be the domestic and global leader."

"Bottom line," said Singh, "the telemedicine industry is another addition to the list of industries for which every Amazon move will now be closely watched."

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