$UnitedHealth (UNH.US)$ Last night, only the Dow Jones among...
$UnitedHealth (UNH.US)$ Last night, only the Dow Jones among the three major U.S. indexes declined - largely due to a sharp drop in UnitedHealth Group’s stock, which plunged 17% after CEO Andrew Witty suddenly resigned for “personal reasons” and the company withdrew its 2025 earnings guidance, citing high medical costs. Year-to-date, the stock is down nearly 40%, and its market cap has been halved.
UnitedHealth has faced mounting troubles. Late last year, its insurance division CEO was shot and killed in New York, triggering public discussion and a wave of negativity toward the company. Many Americans resent UnitedHealth for frequently denying insurance claims, pushing patients into financial ruin in a healthcare system already notorious for high costs. Online, public anger is so intense that some even praised the CEO’s murder - reflecting deep-rooted frustration.
Trump recently signed an executive order to lower drug prices. While not directly aimed at insurers, it signals that health-related industries are under pressure. If the government shifts focus to insurance companies, UnitedHealth could be a prime target.
Stephen Hemsley, former CEO from 2006 to 2017, has returned to lead. Some investors see this as a stabilizing move. Still, the core issue remains: can UnitedHealth’s profitability continue.
If you believe the insurance industry’s business model can endure, the current valuation may be a buying opportunity. But if you expect regulatory crackdowns, especially on claim denials, risks could outweigh potential gains.
ZY
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