Motley Fool Money CVS Gets an Activist Check-Up
Sep 30, 2024
Seth Jayson, a Motley Fool analyst, dives into the challenges CVS faces with activist investors and the need for a turnaround in its insurance operations. He also unpacks the impact of fluctuating interest rates on the housing and car markets, reflecting on recent reports from KB Homes and CarMax. Meanwhile, Jason Moser analyzes Uber's ambitious quest to transform into an 'everything app,' discussing its advertising revenue surge and the strategic maneuvers against competition from industry titans.
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CVS App Pricing Issue
- Seth Jayson had a frustrating CVS experience with app pricing discrepancies for medical braces.
- This highlights the disconnect between in-store and app pricing, impacting customer experience.
CVS Insurance Challenges
- CVS acquired Aetna in 2018, aiming to leverage insurance expertise under CEO Karen Lynch.
- However, high costs, especially in Medicaid, have hampered insurance profitability.
CVS Business Segments
- CVS comprises three main segments: pharmacy, front-of-store retail, and insurance.
- Insurance currently poses the biggest challenge to earnings, while pharmacy and PBM perform decently.