Investors ‘probably overreacted’ to Amazon’s drug push, Barron’s says

Drugstore stocks plunged on the news that Amazon (AMZN) is buying mail-order pharmacy PillPack, Bill Alpert writes in this week’s edition of Barron’s. By week’s end, shares of Walgreens Boots Alliance (WBA), CVS Health (CVS), Rite Aid (RAD), Fred’s (FRED), Cardinal Health (CAH), AmerisourceBergen (ABC), and McKesson (MCK) were all in negative territory as investors “probably overreacted,” he contends. No one should doubt the ability of Amazon to disrupt an industry, but Wall Street has greatly reduced the multiples that it pays for drug chains and chances are, drugstore stocks will recover from that “anxiety attack,” Alpert adds.

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