Why Did Molina Healthcare Stock Surge Today?
Key Points
Michael Burry made it public he was investing in Molina Healthcare last month.
The money manager now calls it a potential "generational buy."
- 10 stocks we like better than Molina Healthcare ›
Molina Healthcare (NYSE: MOH) looks to be one of the big winners in the S&P 500 index on this penultimate trading day of 2025. It's not because of any new healthcare legislation or news about the sector, though.
Molina shares jumped as much as nearly 5% today because famed investor Michael Burry highlighted the company in a positive light. Investors took notice, particularly because Burry is known for his prowess in betting against stocks prior to the Great Financial Crisis. Burry's fame grew after he was featured in a Michael Lewis book and a subsequent movie, "The Big Short."
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Molina stock was trading 3.8% higher as of 12:35 p.m. ET, after Burry highlighted the insurer's fundamentals and stated that it could become an acquisition target if its valuation remains depressed, according to reports.
Image source: Getty Images.
Why the "Big Short" is long Molina
Burry isn't commenting on Molina Healthcare for the first time. He posted on social media in November about holding long Molina stock. Yesterday, he doubled down on his positive outlook on Molina. He has compared it to Warren Buffett's investment in insurer Geico and called it a potential "generational buy."
With Molina shares down 40% this year, investors seeking additional exposure to the healthcare sector may want to take a cue from the renowned money manager and delve deeper into Molina Healthcare.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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