Michael Burry's 'Peanut Butter And Bananas' Trade Molina Dwindles In Momentum After Surprise Q4 Loss

Molina Healthcare Inc. (NYSE:MOH) shares have collapsed in 2026 following the fourth-quarter earnings miss that has sent its technical indicators into a tailspin.

Technical Indicators Crater Following Earnings Shock

It reported a surprising adjusted loss of $2.75 per share. Wall Street was expecting a profit of $0.34.

Following the earnings release on Feb. 5, Molina’s stock plummeted more than 30% in a single session, touching a 52-week low of $121.06.

This price action has decimated the stock’s Benzinga Edge rankings, where its momentum score collapsed from 14.04 to a bottom-tier 5.72 week-on-week. The stock is now down 24.16% year-to-date, according to recent market data.

MOH maintains a weaker price trend over the long, short, and medium terms, with a strong value ranking, as per Benzinga's Edge Stock Rankings.

Burry's ‘Peanut Butter And Bananas' Bet Sours

The collapse represents a significant blow to the “Big Short” investor Michael Burry, who recently reaffirmed a massive contrarian position in the stock.

Burry, who famously likened his long MOH/short PLTR pair trade to “peanut butter and bananas,” has compared Molina to a young GEICO, betting on its Medicaid resilience.

Despite the current 27% loss on his estimated purchase price, Burry maintains that the market’s reaction is overly harsh.

The ‘Trough Year’ Outlook

The fourth-quarter loss was largely attributed to $2.00 per share in unfavorable retroactive revenue adjustments in California and soaring medical costs across Medicare and Marketplace segments.

CEO Joseph Zubretsky characterized 2026 as a “trough year” for margins, forecasting an adjusted EPS of at least $5.00—significantly lower than previous projections—as the company navigates a transition away from traditional Medicare Advantage products.

What’s Going On With MOH Stock?

Shares of MOH have declined by 24.16% year-to-date, while the S&P 500 was down 0.33% in the same period.

The stock was down 19.98% over the last six months and 49.60% over the year. On Tuesday, the stock was 0.02% higher in premarket.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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