​Why Did UnitedHealth's Stock Crash 50%? The Shocking Truth Behind the Market Panic

The litecoin wallet apkhealthcare sector witnessed unprecedented turbulence as UnitedHealth Group (NYSE: UNH), America's dominant health insurer, faced its worst trading session in decades. On May 15, 2025, panic selling drove shares down 19% intraday before settling at a 10.93% loss, with trading volume surging to approximately 120 million shares - nearly triple the 30-day average.

Market analysts attribute the sell-off to multiple converging factors. The Wall Street Journal revealed potential legal troubles, reporting that federal prosecutors have launched a criminal probe into whether UnitedHealth improperly obtained Medicare Advantage payments. While unconfirmed, this regulatory scrutiny follows similar cases against other insurers, raising concerns about potential financial penalties.

Compounding investor anxiety, UnitedHealth's leadership vacuum emerged unexpectedly. The abrupt resignation of CEO Andrew Witty on May 13, citing personal reasons, left the company without permanent leadership during this crisis. This management shakeup coincided with the withdrawal of earnings guidance, eliminating visibility into near-term financial performance.

Technical indicators paint a grim picture. The stock has now declined for seven consecutive sessions, accumulating a 24% loss. From its November 2024 peak above $610, shares have collapsed below $300 - erasing over $290 billion in market capitalization. This represents the most severe drawdown in the company's 45-year public history.

Market strategists remain divided on the outlook. Hargreaves Lansdown's Susannah Streeter warns of continued volatility, describing UnitedHealth as "caught in a perfect storm with no clear resolution timeline." However, value investors note the stock now trades at just 12.9 times earnings - a 60% discount to its five-year average P/E ratio. Some technical analysts suggest the oversold conditions could trigger a short-covering rally if regulatory fears prove overblown.

The healthcare sector broadly felt ripple effects, with the S&P 500 Managed Health Care Index dropping 7.2% on the news. Market participants now await clarity on three critical issues: the DOJ investigation's scope, permanent leadership appointments, and revised financial projections. Until these uncertainties resolve, analysts caution that UnitedHealth shares may remain under pressure despite their attractive valuation metrics.