Stocks to Watch Today: Tesla, Nike, and Humana
- by The Tokenist
- Oct 02, 2024
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Published on October 02, 2024 11:24 AM EST
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Major market movers Tesla (NASDAQ: TSLA), Nike (NYSE: NKE), and Humana (NYSE: HUM) faced significant challenges on Wednesday, with all three stocks experiencing notable declines at the time of writing (10:57 AM EDT). Nike: Guidance Withdrawn Amid CEO Transition
Nike reported disappointing first-quarter results for fiscal year 2025, with revenue of $11.59 billion missing estimates of $11.65 billion.
The company’s stock plummeted about 7% after the report, trading at $83.55, down 6.26% for the day. Nike Direct revenues fell 13% year-over-year to $4.7 billion, while wholesale revenues dropped 8% to $6.4 billion. In a surprising move, Nike withdrew its full-year guidance and postponed its upcoming investor day amid a CEO transition.
Elliott Hill, a former Nike executive who retired in 2020, is set to replace John Donahoe as CEO on October 14, 2024.
Humana: Medicare Quality Ratings Plummet
Humana faced the most severe stock decline among the three, with shares plummeting 16.03% to $234.65. The healthcare giant reported a significant decrease in its membership for 4-star Medicare plans and above, falling from 94% in the prior year to just 25% for 2025.
This drastic reduction was primarily due to the downgrade of Humana’s H5216 contract from 4.5 stars to 3.5 stars, affecting approximately 45% of its Medicare Advantage customers. The decline in performance is expected to impact Humana’s quality bonus payments in 2026, leading to concerns about future revenue. Humana’s stock is now on track for its worst day since 2009, with year-to-date returns at -48.42% compared to the S&P 500’s +19.60%.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. Stock prices quoted updated as of 10:57 AM EDT.
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