Centene Record Drop, Tesla Vehicle Sales Decline, Coinbase Rises

On this edition of Stock Movers:

- Health insurer Centene Corp. (CNC) stock plunged as they shocked investors Tuesday when it withdrew its profit outlook on precipitously rising risks from Affordable Care Act plans, sending shares plummeting the most on record. The company appears to have been badly caught off guard by the impact of US government actions. It’s an ominous sign for insurers, whose purpose is to price for risk but have lately been blindsided by it.

- Tesla (TSLA) shares rally after after the carmaker posted a less drastic decline in vehicle sales than the most pessimistic analysts feared. The company delivered 384,122 vehicles during the last three months, down 13% from a year earlier. While that leaves Tesla in a deep hole to dig out from to avoid another annual drop, some investors were braced for a more than 20% plunge. “We’re at the bottom here,” Gene Munster, managing partner of Deepwater Asset Management, said on Bloomberg Television.

- Coinbase (COIN) and other crypto-linked stocks rose today. Specifically, Coinbase users in Australia can now select PayPal as a payment option to buy and sell cryptocurrencies. Last week, shares hit first record since 2021 after the US Senate passed legislation for stablecoins pegged to the dollar and in May, the company was added to the S&P 500.

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