After mobile advertising supplier AppLovin (APP) traded to as high as $525.15, the stock lost 12.22% on Wednesday. APP stock closed at $331, erasing the post-earnings rally.
A short report from Fuzzy Panda and Culper created panic selling on AppLovin. Both firms hold a short position in the firm. The CEO posted a blog post to respond to the “nefarious short-sellers (who) are making false and misleading claims.” The CEO said that AppLovin has sophisticated AI models to enhance advertising for its partners.
Centene (CNC) closed at $56.90, down by 7.22%. President Trump signed an executive order late Tuesday. He directed federal agencies to require insurers and providers to offer more transparent healthcare prices.
Centene, UnitedHealth (UNH), Humana (HUM), CVS Health (CVS), Cigna (CI), Alignment Healthcare (ALHC), and Elevance Health (ELV) fell on Wednesday. Watch out for these stocks staging a rebound as fears subside.
Molina Healthcare (MOH) is a notable decliner. The stock offers strong growth and profitability but trades at a premium.
Risks
The House passed a budget proposal that will result in billions of dollars in Medicaid cuts. The Energy and Commerce Committee has responsibilities that include Medicaid and Medicare. It needs to find around $880 billion in cost cuts.
Your Takeaway
Bet on the Committee minimizing cuts to Medicaid. It may find cost savings in other areas.
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