Stock Movers: Stellantis Plummets, Molina Healthcare Drops, Under Armour Rises

Stellantis Reverses EV Strategy, Faces Major Charges

• 🚗 Stellantis, the maker of Jeep and Chrysler, is down 23% after taking a $26 billion charge primarily linked to reversing its electric vehicle (EV) strategy.
• 💡 This charge covers the costs of canceling EVs and compensating suppliers, significantly exceeding charges announced by rivals like Ford and GM.
• 📉 The new CEO blames his predecessor for an overly aggressive EV commitment, with the stock down 26% in the past year, contrasting sharply with Ford (up 48%) and GM (up 74%) who have pulled back sooner on EV investments.

Molina Healthcare's Profit Forecast Misses Expectations

• 🏥 Molina Healthcare shares plunged 31% after forecasting 2026 annual profit significantly below Wall Street expectations, with adjusted earnings projected at $5 per share instead of nearly $14.
• ⚠️ The health insurer will stop offering Medicare Advantage prescription drug plans for 2027 due to rising medical costs across its programs.
• 📊 Molina, which primarily sells Medicaid plans, is struggling with pricing plans affordably while meeting investor profit expectations, leading to a 38% stock decline over the past year.
• 🗣️ Analysts note a significant loss of management credibility, which will take time to rebuild.

Under Armour Shows Signs of Turnaround Despite Headwinds

• 👟 Under Armour shares are up 3% as the company reported a surprise quarterly profit and slightly exceeded revenue estimates, raising its full-year profit guidance.
• 📉 Despite these positives, North American demand for its products is down 10%, and the stock remains down 17% over the past year.
• 🎯 The CEO describes the turnaround as slowly taking shape, but faces ongoing challenges like tariffs and competition from brands like Nike and potentially Lululemon in the athletic and athleisure markets.