Why Rite Aid Corporation Stock Is Riskier Than Ever With the Amazon Threat
Rite Aid Corporation (NYSE: RAD) keeps on taking hits. The pharmacy retailer has lost around 80% of its market cap so far this year, after a planned acquisition by Walgreens Boots Alliance (NASDAQ: WBA) fell through. Just when it seemed Rite Aid might be able to rebound a little after the sale of a large chunk of its stores to Walgreens was finalized, another hit came along.
All of the major pharmacy stocks nosedived after the St. Louis Post-Dispatch reported last week that Amazon.com (NASDAQ: AMZN) has obtained wholesale pharmacy licenses in at least 12 states. But Rite Aid stock tanked the most, for one big reason: Amazon's likely entrance into the pharmacy business makes Rite Aid stock riskier than ever before.
Image source: Getty Images.
Source: Fool.com
Amazon.com Inc. Stock
The stock is one of the favorites of our community with 155 Buy predictions and 1 Sell predictions.
As a result the target price of 190 € shows a slightly positive potential of 13.01% compared to the current price of 168.12 € for Amazon.com Inc..
