Michael Burry’s Bet Lifts Molina Healthcare After 40% Stock Market Plunge
Molina Healthcare's stock experienced a significant increase following investor Michael Burry's endorsement. The company's shares rose nearly 5% after his comments, partially reversing its substantial 40% decline in the stock market in 2025. Burry, renowned for his astute stock market investments before the 2008 financial crisis, described Molina Healthcare as a potential 'generational buy'.
Burry initially expressed interest in Molina Healthcare in November, maintaining a long position in the stock. His recent remarks compared the company to Warren Buffett's early investment in Geico, suggesting it could provide similar long-term stock market value. By the third quarter of 2025, he had made Molina his top new stock market holding, acquiring 125,000 shares worth approximately $23.92 million—around 1.73% of his portfolio.
The move was part of a broader defensive strategy in the healthcare sector, balancing his aggressive short positions in AI-related stocks like Nvidia and Palantir. However, no further stock market purchases were made later in the year, as Burry closed Scion Asset Management in November. According to SEC filings, Molina's stock had fallen roughly 42% over the past year, trading at $166.54 by 29 December 2025. Burry also hinted that Molina could become an acquisition target if its valuation remained depressed. His endorsement briefly lifted the stock, which was up 3.8% by 12:35 p.m. ET on the day of his comments. The surge reflected renewed investor interest in a sector that has faced broader market challenges.
Molina Healthcare's stock struggled in 2025, dropping 40% before Burry's intervention. His comparison to Buffett's Geico bet and the suggestion of a low stock market valuation have sparked fresh attention. For now, the company remains a focal point for investors watching for potential consolidation in the healthcare industry.
