NEW YORK, NY / ACCESSWIRE / June 19, 2017 / Even pharmacy chains like CVS Health Corp.'s and Walgreens Boots Alliance's shares were shaky after Amazon announced its deal to acquire Whole Foods. Grocery stores and pharmacy chains were feeling the pressure after Friday's big announcement. Despite the acquisition not directly affecting CVS nor Walgreens, the two stocks saw shares drop as investors cautiously wait to see if there will be any potential threat. It also doesn't help that a CNBC report back in May had indicated that Amazon may also be interesting in launching its own delivery and online pharmacy business.
RDI Initiates Coverage on:
CVS Health Corporation
Walgreens Boots Alliance, Inc.
CVS Health Corporation's (NYSE: CVS) shares closed down 3.78% on Friday on trading volume more than twice as large as usual. CVS was among other pharmacy stocks to drop after Amazon announced it was buying Whole Foods. Traders now may have reason to worry that the online retail giant may be choosing pharmaceutical sales as the next thing to break into. CVS also recently reported a 4.7% decrease in same-store sales in its Q1 report which was not that assuring for traders. In other news the company did announce that in partnership with Drug Store News and Mack Elevation, it will hold an innovation summit that brings together leaders from major healthcare, technology and consumer brands including Facebook, Under Armour, Google and IBM. The summit will be for a discussion about emerging trends that are helping reshape the health care industry.
Access RDI's CVS Health Research Report at:
Walgreens Boots Alliance, Inc.'s shares closed down 4.99% on Friday after the big Amazon news. Plus investors weren't thrilled over some pessimistic updates on its ongoing potential merger with Rite-Aid. The merger has been now in the process for about 1.5 years. A Street.com report indicated that a SEC filing by Rite Aid didn't have an upbeat tone about completing the deal. The Federal Trade Commission is expected to resolve its antitrust review of the merger before July 4th. Chairman Maureen Ohlhausen and Terrell McSweeny are two sitting members that are left who need to vote to challenge the deal before the 7th of next month. If they don't, Walgreens will able to consummate the deal. Traders are eagerly waiting for the FTC's decision.
Access RDI's Walgreens Boots Alliance Research Report at:
Our Actionable Research on CVS Health Corporation (NYSE: CVS) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) can be downloaded free of charge at Research Driven Investing.
Research Driven Investing
We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.
RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.
Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
For any questions, inquiries, or comments reach out to us directly at:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.