UnitedHealth Continues Downslide; Amazon-FedEx Deal; Hertz Lower

On this episode of Stock Movers:
- UnitedHealth Group (UNH) is lower this morning after it suspended its 2025 outlook, citing higher-than-expected medical costs for new Medicare Advantage beneficiaries, and expects to return to growth in 2026. The company also named Stephen Hemsley as its new CEO, replacing Andrew Witty, effective immediately.
- Amazon (AMZN) is higher this morning after reaching a multiyear agreement with FedEx to deliver large packages for the online retailer, renewing a relationship between the two companies that ended in 2019. The deal follows plans announced in January by UPS to reduce by half the number of packages it delivers for Amazon by the end of 2026.
- FedEx (FDX) is also trending upward this morning after on the Amazon-FedEx news.
- Hertz (HTZ) fell in US premarket trading after the rental company reported a larger-than-expected loss in the first quarter. The 1Q earnings are a miss with Ebitda loss being higher than expected, write Barclays analysts Dan Levy and Josh Cho.

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Episode Transcript

Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg data.

Speaker 2 (00:17):
Right now, we need to take a look at some
of the stocks that are out there. Stock's on the
move today, Tom Keenan Postenia and with us Bloomberg's John Tucker.

Speaker 3 (00:26):
And we must start with this United Health Group unexpectedly
replacing its CEO, also suspending its earnings guidance. What a
mix here, raising increasing questions over how the company. Remember
this is once regarded it as a pretty safe bet
by investors. They have gotten their predictions so wrong about
this company. The company is bringing back the chairman and

(00:48):
the former CEO, Stephen Helmsley for the top role. He's
no spring chicken. By the way, Andrew Whitty has resigned
for what they say are in quotes now personal reasons.
The Health Insure those top insurance executive was killed in
New York last December, also shredding its twenty twenty five outlook.

(01:09):
A pretty abrupt change in the executive suite and also
the lack of a forecast comes less than a month
after the company shocked investors by cutting its annual guidance.
Remember this has always been viewed as a pretty conservative
forecaster that's always delivered on its results. This is the
worst performing stock in the down Jones.

Speaker 2 (01:30):
Back to twenty twenty one.

Speaker 3 (01:32):
Let's move on to the next one. Amazon now has
a multi year agreement with FedEx. They're going to deliver
large packages for the online retailer. This goes back to
renewing a relationship between the companies, remember had ended back
in twenty nineteen. This new deal follows plans announced in
January by UPS to reduce by half the number of

(01:56):
packages it delivers for Amazon by the end of twenty
twenty six. Now, Amazon delivers more than about two thirds
of its own packages in the US through its own
logistics network made smalls.

Speaker 2 (02:07):
Eight of the two thirds is on Third Avenue at
ten am.

Speaker 3 (02:13):
They why they do this? They park not for me,
but delivering to the other houses in my neighborhood. They
block my driveway so I can't get outovi shoby stop
with the deliveries. Amazon a statements that it isn't planning
to use FedEx to replace the business that it still
does with UPS. Let's wind up with the one more

(02:36):
Hurts Global, posting a larger than expended loss in the
first quarter. Rent the company shrinking its fleet of cars.
Some customers slowed bookings. The company show declines on multiple
key metrics. Hurts offering fewer cars for rent. It's trying
to freshen up the fleet and customer there.

Speaker 2 (02:54):
Yeah, yeah, you're you're like ginormous Herts. But is Huber
change their model. If I'm flying into a and I
don't need to run a car, I just get an.

Speaker 1 (03:02):
Uber right right exactly. But if you're gonna be cruising around,
I stick it.

Speaker 3 (03:05):
When was the last time you were in a car?
When you drove a car?

Speaker 2 (03:09):
A long rain question? I stood in line. They wanted
my original Social Security card, which I said was you know?
They used a quill pen right to figure out. She says, well,
you have to go get a new card. And I
never went and got it. I never drove.

Speaker 3 (03:24):
You still have the Nash parked outside.

Speaker 2 (03:26):
I at the Nash in the garage and Missus King
drives it, you know with the chains on yep, in
the in the winter, but in the we have the Bentley.
But you know, other than that, but you know, you know,
I I'm very lucky. I don't have to put up
with the expenses of children and auto and shot.

Speaker 3 (03:46):
And it's not just the expense, but you can attest
to this, but it's just constant worry when they're out somewhere.

Speaker 1 (03:54):
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