Shorting Walgreens
Posted: Jun 30, 2024
- Walgreens is facing challenges with PBMs and competition from CVS - Walgreens may struggle to turn a profit without a PBM due to low reimbursement rates - Walgreens has been relying on its photo department for revenue - CVS has its own PBM and still has a low profit margin - Stock option mentioned: $WBA 18 Oct $10 Put.
🚨 Reddit sentiment: mixed/negative - While there are some positive points regarding Walgreens' assets and potential buyout opportunities, the majority of comments reveal skepticism and concerns about poor service, high costs, the risk of shorting, and the possibility of further declines in stock value. Summarized comments: - Walgreens still sells energy drinks, wine and beer, cigarettes, and has lotto ticket machines, which are viewed as positive revenue drivers. - Some users believe shorting Walgreens now is chasing a play that has already happened, but others argue it could still go down more due to bad future earnings and store closures. - Walgreens is at its lowest point in 20 years, but holds valuable assets like real estate and stakes in other companies. - Store closures might reduce expenses and attract stock buyers, possibly making Walgreens an acquisition target. - There's a concern about the risk of shorting Walgreens due to a potential buyout from companies like Amazon or HIMS, which could cause a short squeeze. - Users are skeptical about Walgreens due to poor service and higher medication costs compared to other retailers like Costco. - Walgreens is pushing pharmacists to use discount cards aggressively as a metric, which is viewed negatively. Stock tickers discussed: $WBA
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