Healthcare Giant Crashing 20% on Poor Outlook

Author

Adam Garcia
April 17, 2025

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A top chipmaker is surging on pre-tariff demand, a major insurer is crashing after a sharp forecast cut, and an edtech firm is pivoting into AI-driven therapy, sending its shares surging 74%. Here’s what’s moving the markets today.

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Futures 📈

What to Watch

Earnings:

  • Taiwan Semiconductor Manufacturing Company Ltd. [TSM]: Premarket

  • UnitedHealth Group Incorporated [UNH]: Premarket

  • American Express Company [AXP]: Premarket

  • The Charles Schwab Corporation [SCHW]: Premarket

  • Marsh & McLennan Companies, Inc. [MMC]: Premarket

  • Blackstone Inc. [BX]: Premarket

  • Netflix, Inc. [NFLX]: Aftermarket

  • Independent Bank Corp. [INDB]: Aftermarket

Economic Reports:

  • Initial jobless claims (Apr 12): 8:30 am

  • Housing starts (March): 8:30 am

  • Building permits (March): 8:30 am

  • Philadelphia Fed manufacturing survey (April): 8:30 am

  • Fed Governor Michael Barr will speak at 11:45 am

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Semiconductors

Chip Giant TSMC Surges Past Earnings Estimates on Pre-Tariff Buying Spree

Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) posted stronger-than-expected earnings for the first quarter, as global clients rushed to secure advanced chips ahead of possible tariff hikes from the U.S.

The world’s largest contract chipmaker, which supplies industry leaders like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL), reported a net profit of NT$361.6 billion ($11.1 billion), beating the average analyst forecast of NT$346.8 billion.

This result follows a 42% surge in quarterly revenue, previously disclosed, driven by an uptick in demand for smartphones, laptops, and consumer electronics—particularly from U.S. buyers bracing for potential trade restrictions.

Investors are now zeroing in on TSMC’s guidance for 2025, which the company plans to release later today.

The outlook carries weight, especially after a rocky week for the chip sector.

New U.S. export curbs on Nvidia’s China-bound chips and a lackluster earnings report from ASML Holding (NASDAQ: ASML) have shaved $200 billion off industry valuations, casting shadows on semiconductor momentum.

Concerns are mounting over how escalating U.S.-China tensions—fueled by renewed trade war rhetoric—might curb global growth and tech consumption.

Economists are already scaling back projections, with uncertainty looming over iPhone sales, computing hardware, and broader tech infrastructure spending.

Healthcare

UnitedHealth Stuns Market with Sharp Forecast Downgrade

UnitedHealth Group (NYSE: UNH) shares are plunging this morning, dropping 20% in pre-market trading, after the company significantly lowered its full-year earnings guidance.

The Minneapolis-based health insurer now forecasts 2025 net earnings per share in the range of $24.65 to $25.15, a steep cut from its previous estimate of $28.15 to $28.65.

The sharp downgrade has erased over $100 billion in market capitalization in just a few hours.

The company attributed the guidance revision to a sharp and unexpected increase in medical service usage among older adults—a trend that caught its actuarial models off guard.

CEO Andrew Witty acknowledged the underperformance, stating the company is taking aggressive action to correct course and realign its long-term outlook.

UnitedHealth is also still navigating internal challenges following the tragic death of Brian Thompson, one of its senior executives, who was shot and killed outside an investor meeting in New York late last year.

The incident added a layer of instability to an already challenging period for the firm.

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Credit Cards

American Express Beats Q1 Forecasts as Cardholders Keep Spending

American Express (NYSE: AXP) reported first-quarter results that surpass Wall Street expectations, driven by sustained consumer spending momentum.

The financial services firm posted earnings per share of $3.64 on revenue of $16.97 billion, marking a 7% year-over-year increase.

These figures topped analyst projections, which had anticipated EPS of $3.47 and revenue of $16.94 billion.

Net interest income also edged past estimates, reaching $4.17 billion versus the expected $4.10 billion.

CEO Stephen Squeri noted that consumer activity during the first three months of 2025 remained robust and in some cases exceeded 2024 levels.

Despite economic uncertainties, the company reaffirmed its full-year guidance of 8% to 10% revenue growth and projected annual EPS between $15.00 and $15.50.

Shares of American Express are trading slightly higher this morning, climbing less than 1%. The stock, however, is still down around 15% year-to-date.

Investor confidence was buoyed last week after Bank of America upgraded the stock to a "buy" rating.

Analysts cited the firm’s affluent customer base as a key buffer against potential macroeconomic slowdowns or a possible recession.

The solid Q1 print reinforces that thesis, showing the company remains resilient amid a shifting financial landscape.

Movers and Shakers

Baijiayun Group Ltd [RTC] - Last Close: $0.22

Baijiayun Group Ltd is growing 74% in premarket trading today after announcing a groundbreaking partnership with Beijing Xinlantian Education Technology to create AI-driven rehabilitation programs for children with autism.

The venture could position Baijiayun as a leading player in AI-powered healthcare solutions for neurodevelopmental disorders.

My Take: While still in early stages, Baijiayun's shift toward AI in healthcare is promising. In the long run, this could mark a meaningful growth vertical beyond its core edtech offerings. Keep a close watch on this stock.

Channel Therapeutics Corporation [CHRO] - Last Close: $1.25

Channel Therapeutics Corporation is a biotechnology company focused on developing and commercializing non-opioid pain therapies.

It is making headlines today after announcing a strategic merger with Ligand Pharmaceuticals' subsidiaries—Pelthos Therapeutics and LNHC—to form a newly branded company, Pelthos Therapeutics. The deal, valued at $50 million, will be supported by fresh funding from Ligand and investors led by Murchinson.

My Take: This merger gives Channel Therapeutics a fast-track path into commercial-stage biotech. Keep this company on your radar and monitor progress on the merger.

Treasure Global Inc. [TGL] - Last Close: $3.81

Treasure Global Inc. is a Malaysian tech firm. It is surging in premarket trading after announcing it has secured exclusive distribution rights for Mezzofy's digital coupon platform in Malaysia.

The partnership is expected to generate $2 million to $4 million in recurring annual revenue within the first year, driving strong investor interest.

My Take: This deal gives Treasure Global an edge in Southeast Asia’s booming e-commerce sector. Keep a close watch on how the deal progresses.

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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