Stock Movers: Stellantis Reverses EV Strategy, Molina Healthcare Misses Earnings, Under Armour Surges

Stellantis Reverses EV Strategy

• 🚗 Stellantis, the parent company of Jeep and Fiat, is taking a $26 billion charge primarily due to reversing its electric vehicle strategy.
• 💸 This significant charge covers the cost of canceling EVs and compensating suppliers, exceeding similar impairments announced by Ford, GM, and Porsche.
• 📉 The company's stock plunged 23% following the announcement, with the CEO blaming his predecessor for an overemphasis on EVs.
• 📈 In contrast, Ford is up 48% and GM is up 74% in the past year, attributed to their pullback from EV commitments, which the market favors.

Molina Healthcare's Financial Struggles

• 🏥 Molina Healthcare shares plummeted over 30% after forecasting 2026 profit less than half of Wall Street expectations.
• ⚠️ The health insurer announced it will stop offering Medicare Advantage prescription drug plans for 2027 due to increasing medical costs across its programs.
• 📉 Molina's stock has been in a downturn, down 38% in the past year, struggling with forecasting lower revenue and management credibility issues.

Under Armour's Revenue Beat and Guidance Increase

• 👟 Under Armour shares rose 3% as the company surprised investors with a quarterly profit and revenue slightly above estimates.
• 🚀 The CEO described the turnaround as slowly taking shape, despite ongoing headwinds like tariffs.
• 📊 The company raised its adjusted earnings per share estimate for the fiscal year.
• ⚠️ However, North American demand for Under Armour products is down 10%, indicating continued market share loss to competitors like Nike.