Chipotle Lost $6.5B, UnitedHealthcare Insider Probe & More
No. 07: UnitedHealthcare's CEO, was set to testify before Congress. Chipotle lost $6.5B in market value over portion sizes. Elon found $516B in savings, cutting Veterans Affairs, & more. Read now!
Chipotle's market value lost $6.5 billion due to skimping on portions. Meanwhile, Musk & Ramaswamy found $516 billion in government savings, leading to cuts in Veterans healthcare, FASFA, and more. In another shocking development, UnitedHealthcare's CEO, set to testify before Congress, was tragically killed. Subscribe now never to miss an issue 👇
Heyyy Confidants 👋🏽
This week has been wild! 😱
First, the UnitedHealthcare CEO was tragically unalived, and he was subpoenaed to testify in a Federal Congress insider trading probe.
Then, Elon Musk is getting heat for cutting funds from Veterans' Health Care, Pell Grants, Head Start, and many other programs.
And now, Chipotle admitted to skimping on portions, leading to a $6.5 billion loss as customers walked out nationwide.
We’ve got a lot to talk about, so let’s dive in! 🎤
UnitedHealthcare CEO's Insider Trading Probe
Let's talk about the UnitedHealthcare scandal.
The situation surrounding the UnitedHealthcare CEO, Brian Thompson is pretty complicated.
The DOJ started investigating them for insider trading and antitrust violations back in October 2023, but shareholders didn't find out until February 2024. During that time, top execs, including CEO Brian Thompson, sold off over $120 million in stock. Thompson alone sold $15 million worth before the news broke, costing shareholders around $102 million.
Thompson was supposed to testify before Congress about these allegations, but tragically, he was shot and killed outside a New York City hotel. Meanwhile, UnitedHealthcare reported record profits of $8.5 billion, making this situation even more shocking. The investigation into his death is still ongoing, with police looking into possible motives related to his role at the company.
Big Steppa of the Week
NYC Mayor Eric Adams is screaming a big "I told you so" to those who mocked him for taking his paycheck in BIT 0.00%↑ coin since 2022.
Elon’s “DOGE” Budget Cuts
Musk and Ramaswamy have found $516 billion in government savings, but it comes with some serious cuts.
They're targeting Veterans Affairs health care, the National Institutes of Health, Head Start, the FBI, and many other vital programs. This plan is part of their new Department of Government Efficiency (DOGE), aiming to cut what they see as wasteful spending.
The general public are worried that these cuts could harm essential services that many Americans rely on.
What do you think about these proposed cuts?
What’s the Buzz in the U.S. Economy This Week? 🐝
Chipotle's Skimpy Portions Lead to $6.5B Stock Drop
Chipotle is being sued by its shareholders for skimping on portion sizes, which hit their stock value hard. Shareholders say Chipotle didn't tell them how unhappy customers were with inconsistent portions of burritos and rice bowls. This blew up on social media, especially TikTok, pushing Chipotle to promise "generous portions" again.
To fix the issue, Chipotle had to spend more on ingredients, hurting their profit margins. Their stock price dropped sharply after second and third-quarter results, leading to a $6.5 billion market value loss. The lawsuit seeks damages for shareholders who bought stock between February 8 and October 29, 2024.
This shows how operational issues and customer satisfaction can seriously impact a company's financial health and investor confidence.
Did you get a skimpy burrito or bowl at Chipotle?
Chipotle Raises Prices AGAIN to Ensure Generous Portions
Chipotle is raising prices to make sure you get those generous portions back!
So, Chipotle is raising prices by 2% in the U.S. to deal with inflation and cover the costs of increasing portion sizes. After tons of complaints about smaller portions, especially on social media, Chipotle promised to bring back "consistent and generous portions." This, plus the rising costs of ingredients like avocados, is why they're hiking prices.
Word of the Week
DOGE - Stands for the Department of Government Efficiency. Although this department doesn't exist, Elon Musk has hypothetically created it and plans to defund and cut various programs (details to be determined).
Editorial Disclaimer: All readers are advised to conduct their own independent research into Bitcoin or any related investment strategies before making an investment decision. Your FinTech Insider Newsletters are NOT financial advice and are solely opinion pieces. Additionally, investors should note that past performance of investment products does not guarantee future price appreciation.