Diamonds and Dogs
Amazon's next industry to conquer, groceries. Amazon announced today they will acquire Whole Foods (WFM) for $42/share in cash for approximately $13.7 billion. Whole Foods is up 27% while rivals which were already struggling are taking this news on the chin. Another amazing day for Amazon and the retail industry.
Two retailers are up (Amazon & Whole Foods), but the rest of the sector looks awful. The retail sector is down 2% led by grocers down anywhere from 7% to 14%. Target (TGT) down 8%, Walmart (WMT) down 5% and Costco (COST) down 5%. The drug store companies are down as well. CVS is down 5% while Walgreens is down 6%. Even Nike (NKE) not affected by Amazon yet is down 3% on a downgrade.