Elevance Health, Inc. (NYSE:ELV) saw a significant drop of 18.66% in its stock price after disappointing Q2 earnings. Net income decreased by 24.2% to $1.744 billion compared to last year. However, revenues for the second quarter increased by 13.4% to $49.776 billion, showing growth potential amidst challenges in the healthcare industry.

The company also adjusted its guidance due to higher medical costs in Obamacare and slower rate alignment in Medicaid. Elevance Health now predicts 2025 GAAP net income per diluted share to be around $24.10, with adjusted net income per diluted share to be approximately $30. Investors are advised to consider other AI stocks for potentially higher returns with less downside risk.

Read more at Yahoo Finance: Elevance Health (ELV) Drops 18.66% After Dismal Q2 Earnings