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Yahoo
4 days ago
- Business
- Yahoo
Health insurer Centene reports surprise quarterly loss
(Reuters) -Centene (CNC) on Friday reported a surprise quarterly loss after the health insurer warned of a revenue slump from government-backed plans, sending its shares down 12% in premarket trading. "We are disappointed by our second-quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory," CEO Sarah London said. The health insurance industry has seen elevated medical costs and changing enrollment patterns, at a time when it braces for big spending cuts and rule changes under the Trump administration. Earlier this month, Centene withdrew its 2025 earnings forecast due to an expected revenue slump from commercial plans under Affordable Care Act, also known as Obamacare. These plans offer a sliding scale of government subsidies based on income. For the second quarter, the health insurer reported adjusted loss per share of 16 cents, compared to analysts estimates of a profit of 86 cents per share, according to data compiled by LSEG. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
The protein boom is only beginning: Morning Brief
They're cramming it into everything now. It's in pancakes and pasta, chips and cereal. Plant-based or harvested from the farm, it's the macro(nutrient) of the moment. And slices of corporate America are not so subtly asking: Have you met your protein goal today? Protein Doritos sounds like the ideal mashup for the gym rat snack fiends of the world. But it's not as farfetched a product as you might think. Pepsi (PEP) plans to unveil new protein offerings for some of its Frito-Lay and Quaker brands, part of a broader shift to enhance their products and strip away artificial flavors and colors. (But what is a tasty Cheeto if not a brazenly synthetic delight?) Pepsi's intended relaunch and extension of popular brands is a reaction to a consumer base on the hunt for healthier, cleaner options. Executives across the food and beverage world see a potential crisis unfolding. As demand for legacy products wavers, companies are reaching for new lines (like fiber, prebiotics, hydration, energy, and protein) to support the core business. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy "Protein is clearly a subsegment in our food and beverages categories that is growing fast," said PepsiCo CEO Ramon Laguarta on an earnings call last week. "Consumers are adopting protein solutions in the diet at a pace that was not the case a few months back, a few years back." Coca-Cola (KO), which reported on Tuesday, is undergoing its own notable evolution. Earlier this year, the company came out with a prebiotic soda brand, Simply Pop, an answer to the initial success of soda alternatives like Olipop and Poppi. Coca-Cola's Fairlife line of lactose-free, ultra-filtered milk and protein shakes (a fitness influencer staple) is touting double-digit volume growth. Coke CFO John Murphy told my colleague Brooke DiPalma that protein is another representation of consumers looking for products that help them in their daily lives, have fewer calories, or are perceived as healthier. Coca-Cola also confirmed it'll offer a Coke variant sweetened with US cane sugar this fall. A confluence of factors has amped up the recommendations and ability to up your protein intake. Strength training is having a moment, in a sort of vindication of gym bro fitness culture but also an expansion and reimagining of it. More young people, older people, and women are skipping (or supplementing) the treadmill and stationary bike and heading to the weight rack. Big, commercial gyms are swapping out cardio machines to make space for pumping iron. Planet Fitness (PLNT) announced plans at the start of the year to install new plate-loaded strength equipment — like bench presses and hack squats — into all of its more than 2,700 clubs by the end of 2025. Logically, protein follows to help realize the gains. Social media reflects and amplifies these trends. Popular influencers, like some of their Hollywood counterparts, are sporting more muscular physiques: wider backs, denser arms, and thicker legs. And they're touting the advantages of higher protein consumption as a method to change the way people look and feel. You have to eat more protein, they proclaim, to grow a dump truck. The opposite is true too: You generally need to actually train to put protein to work — and we may all be going overboard. Otherwise, you're just eating protein aspirationally. The explosion of GLP-1 weight-loss drugs from Eli Lilly (LLY) and Novo Nordisk (NVO) is another reason why consumers are seeing more protein-enriched foods on grocery aisles. As appetite-suppressed Ozempic and Wegovy users eat less and drop pounds, it isn't just body fat they're shedding. People in a calorie deficit generally lose fat and muscle, so healthcare providers advise patients to eat more protein to help preserve their muscle mass. And as a diet trend, the pro-protein movement is also just that, "pro" something, instead of the carb villainization of Atkins of the 2000s or low-fat of the 90s and before. For food and snack companies, it's an opportunity to capitalize on that turbocharged demand by providing something that's acceptable to eat, tackling health through consumption instead of austerity. So far, the market is gobbling it up. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
7 days ago
- Business
- Yahoo
Trump Media stock tests the limits of bitcoin accumulation: Morning Brief
Strategy (MSTR) makes it look easy. Put larger amounts of bitcoin (BTC-USD) on your balance sheet and watch the numbers get bigger. The corporate finance maneuver has drawn a loyal following. But while executives are imitating the process, not everyone is replicating the results. On Monday, Trump Media (DJT) announced it had purchased $2 billion in bitcoin and related securities as part of its bitcoin treasury strategy. The move is the latest example of public companies purchasing bitcoin and, now, ethereum (ETH-USD) to capitalize on rising token prices. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Counting those purchases, President Trump's namesake media group said bitcoin, the largest cryptocurrency, now comprises two-thirds of its total of $3 billion in liquid assets. But just because companies are trying to emulate Strategy's (né Microstrategy) astronomical success doesn't mean that they will. As my colleagues David Hollerith and Laura Bratton have reported, dozens of companies have increased their exposure to the digital asset since 2023. Eighty firms have adopted the 'bitcoin standard' by adding bitcoin to their treasury reserves, according to Bernstein analyst Gautam Chhugani and data tracked by Coinkite. But it isn't an infallible strategy. While Trump Media shares surged following the purchase announcement, the stock has been struggling. Shares are down more than 40% for the year. GameStop (GME), another imitator of Michael Saylor's bitcoin-holding company, has shed 25% so far this year. The meme stock turned "hodler" is down by roughly the same percentage since disclosing its bitcoin-accumulation program in May. Trump Media said it acquired the cryptocurrencies as part of a previously disclosed plan to become a bitcoin treasury company. And the purchase comes on the heels of a promising week in Washington for the crypto industry, which has lobbied for more favorable oversight. The biggest legislative victory yet arrived on Friday when President Trump signed into law a bill that establishes the first federal framework for dollar-backed stablecoins. (Trump and his family have several crypto ventures, including a startup that has launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo.) Read more: How would Trump's strategic bitcoin reserve work? None of the corporate adherents to the Strategy blueprint has managed to generate the same kind of performance, however. Shares of Strategy have more than doubled over the past year and have climbed roughly 50% year to date. After accounting for the company's latest purchases, Strategy now owns more than 3% of all the bitcoin ever minted. Wall Street's most popular bitcoin trade does have its critics. They often point to the dumbfounding arithmetic that Strategy is worth more than the value of the bitcoin it holds. Why not simply buy bitcoin, they implore investors. The answer to the question of why people are willing to pay a premium for Michael Saylor helps explain why Trump Media's stock chart doesn't look like Strategy's. Pivoting to crypto is one way to win. But it may not work for everyone. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
