UnitedHealth Group’s Struggles Deepen as Stock Plummets Amid Rising Costs
UnitedHealth Group's stock continues its downward spiral, losing half its value in 2025 amid a perfect storm of challenges. The healthcare giant's latest earnings report revealed a 43% plunge in profits despite modest revenue growth, with rising medical costs squeezing margins. Investors face a dilemma: cut losses or bet on a contrarian turnaround.
The company's medical care ratio—a key metric—jumped to 89.4% from 85.1% year-over-year, signaling deteriorating profitability. This comes alongside leadership changes and a DOJ investigation, creating unprecedented headwinds for what was once a Wall Street darling.