Oscar Health (OSCR) has seen its stock surge nearly 60% this week, resulting in an increase of nearly $2 billion in market capitalization. This dramatic rise comes without any press releases or earnings updates, primarily fueled by a retail trading frenzy. The stock has been one of the most discussed on the r/WallStreetBets forum, leading to heightened trading activity—approximately 50 million shares changed hands on Wednesday, marking the second-highest trading volume in the company’s history.
The options market also reacted strongly, with call volumes reaching a record 152,414 on Wednesday, and another 95,000 contracts traded by Friday morning, almost tripling the usual volume for the stock.
Despite the speculative nature of this trading wave, Oscar Health does have solid underlying metrics. The company reported significant revenue growth of 48% in 2023 and a projected 57% increase in 2024. Its adjusted earnings per share reached $0.92 in the first quarter of 2025. Oscar is positioning itself not just as a typical insurer, but as a health-tech platform integrating AI into its operations, leveraging a continuous innovation approach reminiscent of high-growth tech companies. This forward-thinking branding may be attracting a more favorable valuation than other traditional insurers.
An additional aspect contributing to Oscar’s visibility and perhaps its attractiveness to traders is the connection to Joshua Kushner, the vice chairman of the board and brother of Jared Kushner. His prominence in both business and political circles may add to the speculation surrounding the stock.
As Oscar approaches just $3 shy of its all-time high, the momentum driven by retail investors seems to be propelling it toward new heights, suggesting a keen interest in both the company’s narrative and its financial performance.
Overall, despite the speculative activities observed lately, Oscar’s growth trajectory and innovative approach present a promising outlook for the company in a transforming healthcare industry.