Oscar Health is rebuilding, tightening its insurance economics and redefining the role of its tech platform. Here is what that shift means for long-term investors and why it matters now.
A number of stocks jumped in the afternoon session after a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies. The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
Let's have a look at what is happening on the US markets before the opening bell on Monday. Below you can find the top gainers and losers in today's pre-market session.
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Older members of Generation Z, often dubbed "zillennials," are rapidly reshaping the landscape of health insurance, demonstrating a pronounced reliance on artificial intelligence (AI) tools to navigate, understand, and secure their coverage. This demographic, characterized by its digital nativism and pragmatic approach to complex systems, is increasingly turning away from traditional advisors in favor of [...]
Over the past six months, Oscar Health’s stock price fell to $13.96. Shareholders have lost 15.6% of their capital, which is disappointing considering the S&P 500 has climbed by 16.3%. This might have investors contemplating their next move.
Oscar Health’s third quarter results fell short of Wall Street’s expectations, reflecting persistent challenges in the individual health insurance market. Management attributed the underperformance mainly to increased market morbidity, which refers to a higher proportion of sicker individuals entering the risk pool, driven in part by Medicaid redeterminations and program integrity efforts. CEO Mark Bertolini described 2025 as a “reset moment” for the market, noting, “Overall risk adjustment data from Wakely in the third quarter show continued higher market morbidity, which we attribute to Medicaid lives entering the market and the initial impacts of program integrity efforts.” The company also pointed to disciplined cost controls and improved administrative expense ratios as partial offsets to these headwinds.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
A number of stocks jumped in the afternoon session after the market experienced a sharp sector rotation, as investors fled growth-oriented technology stocks and piled into value-oriented names amid growing valuation concerns.
Shares of health insurance company Oscar Health (NYSE:OSCR) fell 13.8% in the afternoon session after investors reacted to a proposal to redirect healthcare funding away from insurers and a third-quarter earnings report showing a significant net loss.
Health insurance company Oscar Health (NYSE:OSCR) fell short of the markets revenue expectations in Q3 CY2025, but sales rose 23.2% year on year to $2.99 billion. On the other hand, the company’s full-year revenue guidance of $12.1 billion at the midpoint came in 0.5% above analysts’ estimates. Its GAAP loss of $0.53 per share was 6.8% below analysts’ consensus estimates.
