Stocks: UnitedHealth falls, Coinbase soars, Tesla and Boeing gain, Hertz drops

UnitedHealth Group’s stock fell sharply after a series of troubling developments, according to The New York Times. The company has been under pressure since a major cyberattack last year disrupted its subsidiary, Change Healthcare, which processes payments for thousands of medical providers across the United States. This cyberattack forced UnitedHealth to lend around $9 billion to affected medical practices to help them manage cash flow problems. However, as UnitedHealth began demanding repayment of these loans, many clinics, still struggling financially, initiated lawsuits against the company, claiming negligence and unfair pressure.

The fallout from this incident has drawn criticism from lawmakers and medical associations, who argue that UnitedHealth’s aggressive expansion and consolidation have made the healthcare system more vulnerable to such disruptions. As a result, UnitedHealth has faced mounting legal challenges and reputational damage, contributing to the recent decline in its stock price. The company insists it is working with providers to create flexible repayment plans, but the situation remains tense, with thousands of practices yet to repay their loans

According to The Washington Post, the turmoil at UnitedHealth deepened when CEO Andrew Witty announced his resignation for personal reasons, effective immediately. Stephen Hemsley, the current chairman and former CEO, will step back into the chief executive role. This leadership change comes at a time when UnitedHealth is also suspending its full-year financial forecast due to higher-than-expected medical costs. The company’s first quarterly earnings miss in over a decade had already shaken investor confidence, and the uncertainty around future performance has added to the negative sentiment.

UnitedHealth’s decision to pause its outlook signals that it is bracing for continued financial volatility, especially as medical expenses continue to rise. The company is facing increased scrutiny from both regulators and investors, who are concerned about its ability to manage costs and maintain stability in the face of ongoing legal and operational challenges. The Washington Post notes that these events have led to a significant drop in UnitedHealth’s share price, reflecting broader worries about the company’s direction and resilience.

CNN reports that UnitedHealth’s stock plunged nearly 11% in premarket trading following these announcements, marking one of its steepest single-day declines in decades. The company attributed its decision to suspend its financial outlook to unexpectedly high costs associated with Medicare Advantage, a key part of its business. This move came just after CEO Andrew Witty’s abrupt resignation, adding to the market’s uncertainty. Investors were already rattled by UnitedHealth’s recent earnings report, which described performance as “unusual and unacceptable.”

The combination of leadership upheaval, unresolved legal disputes, and financial unpredictability has left UnitedHealth in a precarious position. CNN highlights that the company expects to return to growth by 2026, but for now, confidence remains shaken.

Sources:

https://www.nytimes.com/2025/05/05/health/unitedhealth-cyberattack-loans-lawsuits.html

https://www.washingtonpost.com/business/2025/05/13/unitedhealth-ceo/5d448240-2fe8-11f0-8498-1f8214bba2d2_story.html

https://www.cnn.com/2025/05/13/business/unitedhealth-ceo-steps-down-for-personal-reasons