UnitedHealth Stock Soars on Berkshire Hathaway’s $1.6B Investment

UnitedHealth Group (UNH) shares surged 13.8% Friday afternoon after Warren Buffett's Berkshire Hathaway disclosed a new $1.6 billion stake in the healthcare giant. The 5-million-share purchase makes UNH Berkshire's 18th-largest holding, sparking a dramatic reversal for a stock battered by earnings misses and regulatory scrutiny.

The investment comes despite UnitedHealth's mounting challenges. Recent quarterly results showed ballooning medical costs forcing an earnings shortfall and guidance suspension. Simultaneously, the DOJ launched dual probes into Medicare billing practices while the company navigates an unexpected CEO departure.

Market observers note the contrarian bet exemplifies Buffett's value-investing philosophy, though some question the timing given UNH's operational headwinds. The MOVE triggered immediate price action, with shares outperforming the S&P 500 and Nasdaq indices by over 13 percentage points during the session.