In Tuesday’s trading session, three stocks fell nearly 10% or more. Humana (HUM) dropped by 10.2%. The devastating sell-off in companies with pharmacy benefits managers continued.
Pfizer (PFE) said that Trump wants to take out the “middleman” in the PBM system.
Insurers could simply fix the system by increasing price transparency. That way, insurers would disclose prices before their customer proceeds with a transaction.
Marvell Technology (MRVL) dropped by 10% yesterday. The upside momentum in Broadcom (AVGO) is on the decline. This hurt MRVL stock the most, while AMD, Intel (INTC), Arm Holdings (ARM), and the Semiconductor Index (SOX) also fell.
Amentum Holdings (AMTM) dropped by 9.55%. The firm posted second-quarter results. Revenue increased by 3.7% Y/Y to $13.86 billion. Non-GAAP EPS was $2.01. Investors are dumping the stock. On the conference call, DOGE is an issue for the entire industry. Doge stands for Department of Government Efficiency. Tesla (TSLA) CEO Elon Musk has the task of achieving cost cuts in government.
Amentum has an 80% exposure on the U.S. government, with 20% between international governments and commercial. Once the incoming administration takes office, markets are expecting Amentum’s business to deteriorate. The firm said it has limited exposure to DOGE.
Investors are not convinced and are selling the stock now.
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