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).
Tesla’s Q3 deliveries fell short of expectations, Nike withdrew its full-year guidance amid a CEO transition, and Humana saw a dramatic drop in its Medicare Advantage quality ratings. These developments led to substantial stock price decreases, with Humana suffering the most severe blow, down over 16% in morning trading.
Tesla: Delivery Growth Falls Short of Expectations
Tesla’s third-quarter deliveries reached 462,890 vehicles, marking a 6.4% increase quarter-over-quarter and the company’s first growth in 2024.
However, this figure slightly missed Wall Street expectations of 463,897 deliveries. The Model 3 and Model Y accounted for 439,975 of the total deliveries. Despite the growth, Tesla’s stock plummeted following the announcement, closing the day at $249.02, down 3.49%.
The electric vehicle maker now faces the challenge of delivering a record 516,344 vehicles in Q4 to maintain its 2023 delivery levels, all while battling increased competition in China and Europe.
Nike: Guidance Withdrawn Amid CEO Transition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 declined after the report, closing the day at $83.10, down 6.77%. 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 11.79% to $246.49. 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%.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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