Burry says he's 'happy' even as shares of insurer he's championed, Molina, dive nearly 30%

By Steve GoldsteinJaimy Lee

Shares of Molina Healthcare and of Centene, another health insurer that's highly exposed to Medicare and Medicaid, were both down

Michael Burry isn't put off by Molina Healthcare's profit warning.

A 26% slide in a stock isn't usually cause for celebration.

But Michael Burry isn't a typical investor. The investor chronicled in "The Big Short" continued to speak highly of Molina Healthcare (MOH) even after the insurer's profit warning for 2026 sent its stock down 26% on Friday morning.

"Is it wrong I get happy seeing charts like that? And even happier when I know and own shares in the company," Burry said in a post on X.

Molina warned that adjusted earnings would reach just $5 per share this year, below analyst expectations for closer to $14, on concerns about Medicaid costs. Its medical-cost ratio - which is the percentage of premiums that it spends on medical care - was higher than expected, at 91.7%. The FactSet consensus was for 91.1%. Molina also said it will exit Medicare Advantage prescription plans in 2027.

Molina said in October that 2026 adjusted earnings would "approximate" the $14 that it forecast for 2025.

Molina CEO Joseph Zubretsky "probably should have just pulled guidance like every other company in the space did last year. 2026 is a trough year, was always going to be," Burry said.

He maintains that Molina is significantly undervalued relative to its fundamentals as well as its peers. He's drawn parallels to Geico, the auto insurer that Berkshire Hathaway invested in and then grew to be a leader in the industry.

Health insurers in general are struggling to produce investor-pleasing results as more Americans are in need of care and after the Trump administration last month proposed lower-than-expected Medicare Advantage rates for 2027.

Centene's stock (CNC) also tumbled on Friday morning and was down about 10% after it said its health-benefits ratio for 2025 was 91.9%.

-Steve Goldstein -Jaimy Lee

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02-06-26 1028ET