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Shares of UnitedHealth Group (NYSE: UNH) plunged by more than 22% Thursday morning after the company reported underwhelming first-quarter earnings and revised its full-year outlook. The health insurance giant lowered its 2025 earnings forecast, now projecting net earnings of $24.65 to $25.15 per share and adjusted earnings of $26.00 to $26.50 per share. This marks a downgrade from its January guidance, which anticipated net earnings between $28.15 and $28.65 per share and adjusted earnings in the range of $29.50 to $30.00 per share. UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%, CEO Andrew Witty said in a statement. The outlook was a result of two factors, the company revealed. First, UnitedHealthcares Medicare Advantage plans saw more people using medical services than expectedespecially visits to doctors and outpatient care. This increase was clear at the end of the quarter and was much higher than the company planned for 2025, although it was similar to high usage levels it saw in 2024. On top of that, Optum Health, a division of UnitedHealth Group, had some unexpected changes in its patients. Some health plans left certain areas, and the people covered by those plans didnt use services much in 2024, which affected the planning for how much money would come in for 2025. Also, more patients than expected were “complex” cases, people with serious or multiple health issues, and were heavily affected by past cuts to Medicare funding. The number of people served by the companys offerings for seniors and people with complex needs grew by 545,000 in the first quarter and remains expected to grow up to 800,000 in 2025, according to the report. The company said these factors are highly addressable over the course of 2025 and it looks ahead to 2026. Other insurance stocks are tumbling, too The health insurance sector saw significant stock sell-offs following what appeared to be surprising financial troubles at industry leader UnitedHealth, according to the Wall Street Journal. Humana, for instance, saw an 8% decline. Elevance Health and CVS Health saw their stock prices fall about 6% each early Thursday morning. UnitedHealth Group reported revenues of $109.6 billion, marking a $9.8 billion increase year-over-year, with first-quarter earnings from operations totaling $9.1 billion.
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E-Commerce
Google has acted illegally to maintain a dominant position in online advertising, a federal judge ruled on Thursday. The tech giants exclusionary conduct substantially harmed Googles publisher customers, the competitive process, and, ultimately, consumers of information on the open web, Judge Leonie Brinkema wrote in her 115-page ruling, which followed another federal judges ruling last year that Google had monopolized the search market. Google was found liable under Sections 1 and 2 of the Sherman Act for actions in the ad exchange and tool sectors, but not that it operated a monopoly on ad networks. Google told Fast Company it disagreed with the courts decision, and would appeal it. We won half of this case and we will appeal the other half, said Lee-Anne Mulholland, vice president, regulatory affairs, in a statement. The latest decision is a big hit to the company, and acts as a prelude to further crackdowns in other jurisdictions, which some suggest could impact its operations. This is a very big deal, says Stacy Mitchell, co-director at the Institute for Local Self-Reliance. The chokehold that Google has over the flow of information and ideas online, and its power to pocket the ad dollars, has been killing off local news outlets and undermining a key foundation of democracy. Jason Kint, CEO of the trade association Digital Content Next, says the ruling underscores the global harm caused by Googles practices, which have deprived premium publishers worldwide of critical revenue, undermining their ability to sustain high-quality journalism and entertainment. Kint believes the decision is a significant step toward restoring competition and accountability in the digital advertising ecosystem. Yet for all the headlines the decision will generate, theres still uncertainty about how much itll change Googles practicesand the wider web. While theres a recognition that the decisions will likely change how Google works, what impact that will have is uncertain. Frankly, the ad exchange market is so complicated that it’s hard to know what the impact of any changes to Google’s operations in that area might mean for internet users, says Anupam Chander, a law professor at Georgetown University. Chander believes any changes compelled by this decision may not immediately be obvious to rank-and-file users. If Google is forced to spin out its ad exchange market or forced to open it up to more competitors, it’s not clear that the results will be visible to users, he says. The ruling could also present a Catch-22: While it may open up the ad market and benefit online publishers, it could also lead to increased data collection of users (since a raft of third parties would compete to gather more data on users to supplant Googles current single supply). Still, the decision, whatever it means for end users, is another drumbeat in a wider shift in power between big tech giants and the governments trying to regulate them. And while attention is on the U.S. right now, its decisionmaking elsewhere that could have the more longer-lasting impact on the web. The U.S. courts decision will likely energize European regulators, who are conducting their own investigation into Googles ad tech practices. A decision there is expected imminentlyand could carry more weight. After years of imposing fines that Google has shrugged off as a mere cost of doing business, the European Commission has the chance to break free from this cycle of whack-a-mole enforcement, says Stephen Kinsella, an independent legal expert with 30 years of experience in antitrust regulation. European regulators may be prepared to go further than their American counterparts, potentially reshaping the digital ecosystem by compelling the breakup of Googles intertwined businesses. By taking decisive action and mandating a structural break-up, the EU can go beyond slapping big tech companies on the wrist, says Kinsella. It can restore a thriving, competitive and fair digital economy that works for its citizens, not entrenched monopolies. This is a moment that Europe cannot afford to let pass.
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E-Commerce
Want more housing market stories from Lance Lamberts ResiClub in your inbox? Subscribe to the ResiClub newsletter. Once again, Zillow has downgraded its 12-month forecast for national home prices. On Wednesday, Zillow economists published their updated forecast model, projecting that U.S. home prices, as measured by the Zillow Home Value Index, will fall 1.7% between March 2025 and March 2026. Back in March, Zillow downgraded its 12-month outlook for U.S. home prices to +0.8%. In February, Zillow downgraded its 12-month outlook to +1.1%. And at the start of the year in January, Zillows 12-month national home price forecast was +2.9%. Why does Zillow keep downgrading its national home price outlook? The rise in [active] listings is fueling softer price growth, as greater supply provides more options and more bargaining power for buyers, Zillow economists wrote in March. Potential buyers are opting to remain renters for longer as affordability challenges suppress demand for home purchases. Essentially, Zillow thinks strained housing affordabilitycaused by U.S. home prices rising over 40% during the pandemic housing boom and mortgage rates spiking from 3% to 6% in 2022is weighing on price growth. According to Zillows home price model, the listing site also believes that weakening and softening housing markets across the Sun Belt will weigh on nationally aggregated home prices this year. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}))}(); Among the 300 largest U.S. metro area housing markets, Zillow expects the strongest home price appreciation between March 2025 and March 2026 to occur in these 10 areas: Atlantic City, NJ: 2.4% Kingston, NY: 1.9% Rochester, NY: 1.8% Knoxville, TN: 1.7% Torrington, CT : 1.6% Bangor, ME: 1.5% Syracuse, NY: 1.4% Vineland, NJ: 1.4% Concord, NH: 1.3% Norwich, CT: 1.2% In that same time frame, Zillow expects the weakest home price appreciation to occur in these 10 areas: Houma, LA: -10.1% Lake Charles, LA: -8.9% New Orleans, LA: -7.6% Lafayette, LA: -7.5% Shreveport, LA: -7.0% Alexandria, LA -7.0% Beaumont, TX : -6.6% Odessa, TX: -6.3% Midland, TX: -5.7% Monroe, LA: -5.5 Below is what the current year-over-year rate of home price growth looks like for single-family and condo home prices. Florida is currently the epicenter of housing market weakness right now. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}}))}();
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E-Commerce
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