In this episode, Scott Becker discusses UnitedHealth Group’s unexpected 20% stock plunge following a major earnings miss, and its ripple effect on the Dow.
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Chapter 1: What caused UnitedHealth Group’s stock to plunge 20%?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is UnitedHealthcare and the markets. So here's what's going on. For the first time in a long time, UnitedHealthcare, UnitedHealth Group, just is tanking. It had a horrible miss on earnings. It's down 20% today.
Chapter 2: How significant is UnitedHealth Group in the US market?
Chapter 3: What recent events affected UnitedHealth Group’s earnings?
Chapter 4: How did the Trump administration’s policy impact UnitedHealth Group?
Again, and UnitedHealthcare is about the fourth largest company in America, right after Amazon and Walmart. It might be third, quite frankly, with CVS fourth or fifth there in terms of total revenues. United's been just a juggernaut that could do no wrong. In fact, it was up again last week as President Trump And the Trump administration raised rates for Medicare Advantage.
Today comes as quite a surprise to Wall Street because it's down 20%. That, you know, United's a part of the Dow, so thus it has an oversized impact on the Dow. So the Dow's also down significantly today, but the NASDAQ and the S&P are also down. So sort of a real negative surprise for United, now down about 21%.
Another couple other stocks that we watch closely, American Express reported earnings down only 1%, so doing fine. Hertz rent-a-car up 20%. Nobody, I think, saw that coming. Just crazy to see what's going on with Hertz and the ups and downs with the rental car companies in relation to tariffs and a lot of other stuff. Thank you for listening to the Becker Private Equity and Business Podcast.
Thank you very, very much.