End of Performance Rally? $700 Million Vanished from U.S. Healthcare Stocks in a Day

DaVita Inc. (DVA) closed down 5.6% at $140.83 on the New York Stock Exchange. In a single day, it erased about $527 million in market capitalization—roughly KRW 700 billion—on trading volume of 1.22 million shares. Two days earlier, after reporting fourth-quarter 2025 results that beat market expectations and raising its 2026 earnings guidance, the stock surged as much as 25% intraday, fueling heightened short-term volatility. More recently, institutional flows have been mixed: South Korea’s National Pension Service added a new stake, some global asset managers trimmed their holdings, and concerns over slowing profitability emerged.

DaVita is the largest specialized dialysis healthcare services provider in the U.S., operating over 3,000 outpatient dialysis centers across the U.S. and 14 other countries to deliver focused care for patients with chronic kidney disease. A significant portion of its revenue depends on reimbursements from public programs like Medicare and private insurers, making its business model highly sensitive to reimbursement rates and regulatory changes.