DAILY UPDATE: UnitedHealth Group Alert as Stocks End Slightly Mixed

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The Justice Department is investigating UnitedHealth Group for possible criminal Medicare fraud, the WSJ reported. The healthcare-fraud unit of the Justice Department’s criminal division is overseeing the investigation and it has been an active probe since at least last summer. Apparently the federal investigation is focusing on the company’s Medicare Advantage business practices. UnitedHealth said in a statement it hadn’t been notified by the Justice Department of the criminal investigation. The statement said the company stands “by the integrity of the Medicare Advantage program.”

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🟢 What’s up

  • Foot Locker exploded 85.70% on the news that Dick’s Sporting Goods will acquire the footwear retailer for $2.4 billion. Dick’s shares sank 14.58%.
  • Speaking of shoes, Boot Barn soared 16.66% thanks to the Western footwear seller’s record revenue last quarter.
  • And in more shoe news, Birkenstock gained 5.89% after the purveyor of the world’s ugliest sandals missed revenue estimates but beat on profits.
  • Under Armour rose 4.47% after the sportswear retailer issued a “meh” earnings report and pulled its fiscal forecast.
  • Cisco climbed 4.85% after the networking company beat Wall Street analysts’ expectations and also issued better-than-expected fiscal guidance.
  • Hopefully you botta ’da stock: Ibotta rocketed 20.01% higher on strong earnings for the cash-back app.

What’s down

  • Apple fell 0.41% on news that President Trump scolded Tim Cook for trying to build iPhones in India.
  • Meta Platforms dropped 2.35% thanks to a Wall Street Journal report that the social media giant has delayed the debut of its flagship AI model.
  • UnitedHealth Group plummeted 10.93% on a Wall Street Journal report that the health insurer is being investigated for criminal Medicare fraud.
  • Ubisoft plunged 13.28% after the video game studio reported a 20.5% decline in net bookings last quarter.
  • Coinbase crumbled 7.20% on news that hackers bribed employees to steal customer information and that it will take $400 million to fix the mess.
  • DXC Technology sank 3.26% thanks to shockingly low fiscal guidance from the IT company.
  • Fiserv’s CFO said that the fintech’s retail payment system will see similar volume next quarter. Shareholders hoping for stronger growth were disappointed and pushed shares down 16.19%.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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