UnitedHealth Stock Tanks: Here’s Why Wall Street Is Panicking Today
UnitedHealth shares are getting crushed—and the Street isn't buying the dip. Here's what's bleeding the healthcare giant dry.
Regulatory Roulette: Fresh policy threats loom over Medicare Advantage margins. No one's placing bets on a quick rebound.
Claims Catastrophe: Rising medical costs torpedo earnings. Turns out, sick people actually use healthcare. Who knew?
Investor Exodus: Institutional holders dump shares faster than a bad hospital meal. Even the algos are nauseous.
Another day, another blue-chip proving 'too big to fail' just means 'too bloated to succeed.' Welcome to late-stage capitalism.
UnitedHealth continues to struggle
The company reported its Q2 financials today, revealing the insurer is still very much struggling. The company was able to deliver on revenue, reporting $111.62 billion versus the expected $111.52 billion, but it missed significantly on earnings per share (EPS), reporting $4.08 per share when Wall Street expected $4.48 per share.
More concerning was the company's outlook for the full year. UnitedHealth expects EPS of at least $16 and sales of $445.5 billion to $448 billion. Wall Street's expectations were EPS of at $20.9 and sales of $449.2.
Image source: Getty Images
The company cited rising medical costs and abandoned "previously planned portfolio actions" as reasons for the disappointing outlook.
UnitedHealth's problems mount
This latest disappointing quarter is the latest in a series of bad news related to the massive insurer: The company's CEO abruptly stepped down, citing "personal reasons"; it was revealed that the DOJ currently has two investigations into the company's Medicare billing practices; and an exposé published by the Guardian alleges the company was paying nursing homes to keep residents out of the hospital when they needed elevated levels of care.
https://www.theguardian.com/us-news/2025/may/21/unitedhealth-nursing-homes-payments-hospital-transfers
There are just too many issues facing UnitedHealth at the moment, with no clear picture of an imminent turnaround. I WOULD stay away from the stock.
