CVS stock plunges after earnings numbers one analyst 'did not even believe'

CVS stock plummeted over 13% after the company reported first-quarter revenues of $88.4 billion, missing expectations by $0.6 billion and revising its 2024 earnings forecast downwards due to higher healthcare service utilization and Medicare reimbursement rate cuts. The company anticipates further challenges in 2025, planning to adjust insurance plan pricing and benefits in response. CVS aims to focus on profit margins rather than membership numbers, considering strategic changes such as exiting certain markets and reducing benefits to manage costs.