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Is UnitedHealth too big to fail? May 01, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [FinanceBuzz]( Good morning. Turmoil continues to engulf US college campuses coast-to-coast. Late last night, police entered Columbia University’s campus and removed pro-Palestinian demonstrators who had occupied an administration building roughly 20 hours before. Violent clashes also broke out overnight between pro-Palestinian protesters and counter-protesters at UCLA. On top of that, today is National College Decision Day, the deadline many schools, including all eight in the Ivy League, have set for students to decide where they’ll go to college in the fall. —Cassandra Cassidy, Holly Van Leuven, Sam Klebanov, Adam Epstein, Neal Freyman MARKETS Nasdaq 15,657.82 -2.04% S&P 5,035.69 -1.57% Dow 37,815.93 -1.49% 10-Year 4.686% +7.2 bps Bitcoin $59,771.18 -5.28% Eli Lilly $781.08 +5.95% Data is provided by *Stock data as of market close, cryptocurrency data as of 12:00am ET. [Here's what these numbers mean.]( - Markets: Stocks must be listening to Pitbull because they dropped to the floor yesterday, [snapping]( a five-month win streak as investors sweat out the Fed’s upcoming decision on interest rates. It was a better day for Mounjaro- and Zepbound-maker Eli Lilly, which climbed nearly 6% after its popular weight loss drugs pushed it to raise its 2024 forecast.  HEALTH [Congress to question if UnitedHealth is too big to fail]( [UnitedHealth logo illustration]( Castro If you’ve ever shaken your fist and yelled at a bill from UnitedHealth, you may have more in common with members of Congress than you think. Lawmakers in Washington are prepared to grill UnitedHealth CEO Andrew Witty in two congressional hearings today, months after a cyberattack on a subsidiary of the healthcare giant, Change Healthcare, [rattled]( the industry and left pharmacies, doctors, and hospitals in the dark. Change processes roughly half of all Americans’ medical claims. Congress wants Witty to clarify how UnitedHealth handled the [breach]( of patient data. But beyond that, it wants to investigate whether the company—the nation’s largest private health insurer—has grown too big and taken on too much risk. Healthcare with a hefty profit However big you think UnitedHealth is, it’s bigger than that: - With a market cap of nearly $450 billion, it’s the fourth-largest company in the US by revenue this year, beating out Alphabet and Microsoft. - The company is eyeing a $24.7 billion profit in 2024. - One analyst estimated that more than 5% of US GDP flows through UnitedHealth’s systems daily. That could all end soon. Throughout most of UnitedHealth’s light-speed growth and acquisition spree, it’s drawn little scrutiny from regulators. But the winds are changing: The DOJ launched an antitrust investigation into the company in February, and today’s hearings show lawmakers are [digging in](. According to the Washington Post: - Sen. Ron Wyden, chair of the Senate committee interrogating Witty today, plans to ask about the company’s practices, like prior authorization. - At a hearing earlier this month, Rep. Buddy Carter said the company “needs to be busted up.” As if that wasn’t spicy enough…some lawmakers are asking the SEC to investigate suspiciously timed [stock sales]( by UnitedHealth execs that occurred shortly before news of the antitrust investigation went public.—CC PRESENTED BY FINANCEBUZZ [Rare unlimited cash-back match turns heads]( [FinanceBuzz]( If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances. On top of that, [this top credit card]( offers a whopping up to 5% cash-back perk that gets matched after your first year. That’s up to 10% back on qualifying purchases in your first 12 months! Take advantage of this offer—[learn how to apply now](. WORLD [Tour de headlines](#) [Marijuana plant]Justin Sullivan/Getty Images Biden wants to reclassify marijuana as a less dangerous drug. The DEA is moving to reschedule marijuana into the same category as prescription drugs like ketamine, anabolic steroids, and Tylenol with codeine, the Associated Press reported, marking the agency’s [biggest marijuana policy change]( in half a century. The proposal, which still needs to be reviewed by the White House, would not legalize marijuana, but it would recognize its medicinal use, make it easier to buy and sell, and acknowledge that it has less abuse potential than drugs like heroin. Biden allies hope the move helps with younger voters, who generally support relaxing weed laws. Binance founder Changpeng Zhao was sentenced to four months in jail. The Chinese-born crypto billionaire, ranked as the 38th richest person in the world, now becomes the richest person ever to do time in a US federal prison, per Bloomberg. Known best as “CZ,” Zhao pleaded guilty in November to [failing to install]( money laundering safeguards at Binance, which the Justice Department accused of widespread banking violations. Zhao also paid a $50 million fine and agreed to step down as CEO as part of his guilty plea. Prosecutors had sought a three-year sentence. Zhao is the second crypto bigwig to head to jail this year after FTX founder Sam Bankman-Fried was sentenced to 25 years in March. Amazon’s ad revenue is soaring, thanks to commercials. The e-commerce giant that tries to sell you toilet paper in between episodes of Fallout generated $11.8 billion in Q1 advertising revenue, demolishing analysts’ expectations due to its [addition of streaming ads]( in default Prime Video subscriptions. Ad sales were up 24% from the same period a year ago, when the company had yet to include commercials on its streaming platform. The ad boom powered Amazon to a big earnings beat, posting $143 billion in total revenue for the quarter. FOOD & BEV [Walmart woos youths with cool food]( [a collage of Bettergoods products with the brand name top and center]( Walmart, the save-money-live-better retailer built by humble folk, got a four-year degree and now only eats peanut butter without hydrogenated oil. At least that’s the vibe of [its new food brand]( Bettergoods, which launched yesterday. It’s Walmart’s biggest push into private-label food in 20 years. Some products, like dairy-free ice cream and flavored butter, are already in stores. The brand will eventually offer 300 items from ~$2 to ~$15, with most under $5. Creamy corn jalapeno chowder in a jar, bronze-cut pasta from Italy, and pistachio nut butter have been promised. Walmart wants to be the monoculture Much like how TSwift went from country darling to pop phenom in Louboutins, Walmart is staying focused on its core customers while pursuing higher-income and younger shoppers, Bloomberg reported. For your uncle, there’s Duracells and birdseed. For your lawyer, there are [Pottery Barn dupes]( and Mario Badescu face spray. And Bettergoods will make “elevated culinary experiences accessible for all,” a spokesperson said. Walmart’s playing 4D chess, crossing not only class divides but also dimensions. Americans 13 years of age and older can now buy physical Walmart products with real money [inside of Roblox]( TOGETHER WITH JOBSOHIO [JobsOhio]( Buckeyes mean business. Did you know Ohio has the seventh-largest US economy? And that it ranks No. 5 among the top states for doing business? Companies are [partnering with JobsOhio]( to access business-growing resources, such as top talent and funding. See for yourself [what Ohio has to offer](. BUSINESS [Dave & Busters bets on betting]( [Barry at Dave & Buster's]( Bad news for the mole at Dave & Buster’s—it’ll soon get whacked more zealously than ever because there will be money on the line. The arcade chain plans to let adults [wager five bucks]( on some of its iconic games, CNBC reported yesterday. The grownups among its 5 million loyalty members will be able to make classics like Skee-Ball about more than just nostalgia by using the D&B Rewards app to bet against each other. D&B is not doing it alone: - It teamed up with competitions-for-cash startup Lucra, which already enables tennis and pickleball hobbyists to play for money. - Lucra avoids the b-word when describing its services, calling them “real-money contests or challenges,” which it says aren’t regulated in the same way as gambling on games of chance. Making things more interesting D&B’s move comes out of the pro sports playbook, where a betting boom has been [boosting]( fan engagement. It hopes that friendly bets will make patrons more drawn to the rattle of its machines. It’s not all fun and games…many experts warn that the legalized betting bonanza comes with addiction risks and that the [proliferation of “social betting”]( apps that use play currency can become a gambling gateway for young people.—SK GRAB BAG [Key performance indicators](#) [Roman dodecahedron artifact]Norton Disney History and Archaeology Group Quote: “One of archaeology’s great enigmas.” That is how the Norton Disney History and Archaeology Group classifies a Roman dodecahedron [recently dug up]( in England and set to go on display at the Lincoln Museum this month. It’s one of 130 such objects found across Europe since the 1700s—and researchers still have no idea what they were for. The most popular theory is that the 12-sided thingamajigs were religious or ritual objects because of how much care was put into making them (archaeologists say the Norton Disney one was deliberately placed on the top of a hill). Reddit sleuths are now [on the case](. Stat: Everyone in the dugout needs to stay away from Japan’s Kansai Airport, because it’s in the midst of the travel equivalent of a 30-year-long perfect game. The airport in Osaka, which will host the World Expo in 2025, has not lost a piece of luggage [since it opened in 1994]( Nikkei Asia reported. Airports typically lose about 7.6 bags per 1,000 passengers—but not Kansai. Last year alone, the airport handled 10 million items without fumbling one. Nikkei chalks up the airport’s unfathomable heater to its “multilayered checking work” and a regularly updated staff manual. Read: How a billionaire Park City real estate feud turned into a fight over dogs. ([WSJ]( NEWS [What else is brewing](#) - [Meta]( is being investigated by the European Union for its handling of disinformation ahead of parliament elections in June. - [Women]( should get mammograms every other year starting at age 40, according to new guidance from the US Preventive Services Taskforce, due to rising rates of breast cancer in people under 50. - [Donald Trump]( was held in criminal contempt, fined, and threatened with jail time by a New York judge for repeatedly violating a gag order in his hush money trial. - [Subway]( completed its sale to the private equity firm Roark Capital for $9.6 billion. RECS [Wednesday to-do list] Remember: Why scientists say octogenarian “super-agers” have such [good memories](. Photosynthesize: The internet’s largest [database of plants]( and where to buy them. Wish upon a star: Disney World now has a [Michelin-star restaurant](. Live large: It’s not too late to set yourself up for financial success in 2024 with the Money with Katie [Wealth Planner](. One-stop shop: Find your [workplace must-haves]( all in one place with Walmart Business plus have them delivered when you need them. Yep, [it’s that easy]( Fresh wheels: The market surrounding micro-EVs is estimated to be around [$470b](. The innovators at the center of the boom? Eli Electric Vehicles. Read our article and [join the revolution]( *A message from our sponsor. GAMES [The puzzle section](#) Word Search: Find a slow-dance partner and awkwardly sway to today’s Word Search, which features famous prom scenes from movies. [Play it here](. Pizza trivia Using your best logic skills, try to guess how many pizzas Domino’s sells per day in the US. Make it a group activity at work today. The person who’s furthest from the answer has to buy everyone else pizza. SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER About 1.5 million Word of the Day Today’s Word of the Day is: thingamajig, meaning “something that is hard to classify or whose name is unknown or forgotten.” Thanks to Suzanne from Baltimore, MD, and many others for the unforgettable suggestion. Submit another [Word of the Day here](. ✤ A Note From Eli Electric Vehicles This is a paid advertisement for Eli Electric Vehicles’ Regulation CF offering. Please read the offering circular at [invest.eli.world](. Written by [Adam Epstein]( [Cassandra Cassidy]( [Holly Van Leuven]( Sam Klebanov, and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. 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