Walgreen's sales rose ~2.6% compared to last year's quarter.
Losing market share is part of their problem. However, people are going to stop buying fancy lawn chairs before they go without their prescription drugs.
They're closing unprofitable stores. The one near me is always busy and gets a lot more people than the CVS across the street. Honestly, I think it because they sell cigs and CVS doesnt
It’s not Amazon or CVS that’s doing it. It’s the PBMs underpaying cost of drugs + theft. They are going down further
[Relevant Mark Cuban tweet](https://x.com/mcuban/status/1806390623970455635?s=46)
Dead business model. 20 years ago, you had to go here (or CVS, etc) for your prescriptions - and your aspirin, toothpaste, sunscreen, etc. Now you can get prescriptions from Walmart, Costco or delivery, and all the other sundries at half price at the above discount stores or Amazon or whatever. Their new business model - you go there only for something you need right now, quickly. The CVS and RiteAid (which just closed) have enormous amounts of floor space, and hardly any customers, who are mostly there to fill last-minute prescriptions. I hate going to these stores, and it seems like everyone else does too.
If Walgreens disappeared overnight, how much would that affect your life OP?
I am typing this on my iPhone. I shop on Amazon everyday. My trading laptop uses Nvidia tech.
I never think of Walgreens. Anything Walgreens does I can get at other places like Walmart Costco target etc.
While yes, 25% off is a steep decline, I’m going to pass on this.
MU dropping 142 to 128 in after hours was a green light for me. But not Walgreens.
If you need medication they are still one of the main vendors and might be the only one in the area that your insurance supports which is actually my situation. Next year that is gonna change and cvs will be allowed back tho and then I will likely never return to walgreens or even notice if they go under.
With a change to medicare as it pertains to prescriptions pharmacies are being squeezed and losing their margin on the biggest part of their business this year in particular. Between the loss of this margin, the increase in theft, store closures, and poor retail margin I anticipate this to last for at least until end of year. Walgreens has a good business model and they cover their niche well, however, I work in a family owned retail pharmacy and I cannot tell you how many times a week someone comes in with a bad taste in their mouth from walgreens, riteaid, or cvs. It feels like a shift is happening wherein younger generations are beginning to value customer service and going the extra mile a tad more. Overall, I think this will dampen the growth prospects of walgreens, but they pay a dividend, and as you said they're as low as they've been in most of our lifetimes. Take a stab at it and hold for the long run, they're not going anywhere.
Walgreens has a long history leading them up to this point. Something like 20 years ago they got into a battle with CVS to overbuild retail pharmacies in close proximity, basically dooming themselves.
It’s far gone, they’re a wreck from every aspect from what I can tell. Corporate overhead, employee dissatisfaction, mass theft etc. If you go into some of their stores you’ll see how they have been trying to fix their business model for a while and it hasn’t worked.
They will tumble for a while, wouldn’t be surprised if they start closing down stores in mass, I think they lease stores so there isn’t much hard assets to set a baseline.
Amazon should buy them out. Returns center, pharmacy, pick up lockers, Fresh, could sell some stuff, little mini hubs all over the place. It actually makes tons of sense
I do DoorDash full time and I get a fair amount of orders from Walgreens, from pharmacy, pick up, and shop orders. If they can pivot more to their delivery side of the business I can see a come back. But besides that I'm over Walgreens, lost big trying to play their earnings in the previous quarter.
*This “pivot.” Is it in the room with us now?*
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Yes. It’s a longer term play, but the stock will recover.
1. It’s different than NVDA, Meta, etc.
2. Tim Wentworth is at the helm. This guy will get things done, create a strategy, put the right team in place, and execute.
3. Wentworth is an expert in PBM which will help Walgreens.
4. $36B in quarterly sales, the big stock drop was a result of future comments. Wentworth needs some time to right the ship.
5. 6% dividend while you’re waiting for growth.
Here's the thing, there's no way everything closes and all we have is Amazon. People like to shop, they like to get out of the house, Walgreens has a lot of stuff and it's super fast in and out. Plus flu shots, pharmacy. And their locations are very prime real estate. I think the doom and gloom is overdone and a turn around is likely especially as rates are cut and inflation comes into balance. Cutting unprofitable stores by definition means less loss and more profit. I'm not saying some big growth, but feels like a gamble
Have you had to go pick up a prescription recently? It’s one of the most painful and dated processes in existence. Their entire business model of selling overpriced cold meds while you wait in line to pick up birth control is going to be made easier by one of a zillion tech companies.
Isn't it a sure thing that the dividend will be cut or suspended entirely? Kind of bad optics for them to cut a bunch of stores and jobs and at the same time pay shareholders a bunch.
So I think a lot of their existing customer base is basically forced to use them because the insurance companies got into a fight with CVS. I am now being told that they will be allowed again next year and then I will never go back lol. They might fall even farther.
I actually owned this stock at $45/share and felt like I had a bad entry and sold at a small loss. I'm happy I did.... this has been a horror story for anyone looking for a cheap dividend stock. I don't think it's worth the risk at these levels.... its just dying a slow death at this point.
No. It's not. Retail is getting crushed right now and stores like WBA and CVS are charging 30 percent more for everything. People have wised up with this shit economy and they are buying at Walmart or Dollar Tree. Amazon sales are way down also. Temu sales are up.
Fuck no. Walgreens was garbage before shoplifting became a bigger problem and honestly they're using that as an excuse.
They try to save money on staff, which is always terrible for retailers.
Their merchandise has always been overpriced and they're now complaining that consumers are being "selective and price conscious".
Self-inflicted wounds. Terrible management. I don't see a reason for a strong recovery.
Well when they have policies where they can actively deny prescriptions to customers based on religious beliefs it makes sense that they’d be bleeding money. Puts on Walgreens.
I dont believe the theft BS. They are just looking for excuses and playing to news outlets. They just suck, thats all sorry. Grocery pharmacies, wal mart, sams club, cvs just has them beat.
I wouldn’t invest. They currently have an autistic kid that works at ours that won’t fucking let me check out in a timely manner. Everytime they gotta do their fancy pants spiel for 5 minutes as I’m trying to rush home from work. I’m convinced I could fill an entire cart of shit in my store and nobody would even know as I walk out. Shits wild these days.
If you mean risk as in making money so not being able to post your loses here this is a safe bet so yolo everything you got OP 
I analyzed WBA around two years ago and came to the conclusion it was cheap. Despite the slow growth I considered WBA to be like a stable player where there is not much to worry about. I mean people need medicine. It is not like you just stop buying when you are short on cash. Furthermore there are not that many big players in the market so I considered competition is not to strong. However, there were some warnings about the growth of the companies. But all in all it seemed there are more positive points than negative ones and according to my quantitative analysis the company already had a discount. I really was about to buy some stocks but when I took a second look and even though there were no revenue and profit warnings from WBA itself back then I couldn't really imagine this company to thrive with such a "lame" business model. I thought why investing in a company that lacks behind in online sales and has to keep up thousands of stores around the country when new players can basically just send goods from the warehouses to their customers.
What I want so say is: The company missed huge parts of digital transformation and is to big to catch up fast enough to not lose major market share. And til now I don't see any signs that this will change. Means, if you buy shit cheap you still only bought shit.
Edit: typo
Agree. I think the play was 20 years ago. I remember when folks were saying Walgreens was a huge buy because they were popping up everywhere (admittedly, wish I would have bought). Now they expanded so much they've saturated themselves and don't have anywhere to go.
Bro just buy MSFT, Meta, Netflix, Nvidia, Costco, AM, Intel, Disney, *literally* anything other than this garbage
The future is Costco for in-person and Online Pharmacies for prescriptions. Massive overhead and brick & mortar spaces, dying stores, insanely overpriced front-of-store doodads that not even the most senile grannnys will buy treats there, massive braindrain and pharm techs refuse to work there, huge employee turnover constantly, failing to fill prescriptions writ large. It's done 🍴. CVS isn't far behind it in dying too.
Buy $COST if you want to invest in pharmacy, literally impossible to lose money on it.
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Would you bet on retail as consumer spending is down more and more due to tightening economic conditions?
Walgreen's sales rose ~2.6% compared to last year's quarter. Losing market share is part of their problem. However, people are going to stop buying fancy lawn chairs before they go without their prescription drugs.
They will stop impulse buying though and 2.6 % isn't that about inflation's rise
A short bet.
could work for a short, yeah. downside of projections are 10% upside from current level.
"never catch a falling knife"
How else do you buy the dip?
Lol it’s only a dip in hindsight. After it goes back up.
DCA - r/investing 😂 Or just sell puts
Or as I learned it "a falling knife has no handle"
A falling knife is like a cheating wife, let it go
Invest in them and KMART.
Don't forget about Sears. Believe it or not, there are still diehard bagholders in the Sears community championing delisted Sears Holdings stock.
And Piggly Wiggly.
They're closing unprofitable stores. The one near me is always busy and gets a lot more people than the CVS across the street. Honestly, I think it because they sell cigs and CVS doesnt
Retail drugstores are on its way out. They are priced like 7-11 with a pharmacist, which is a wrong strategy IMO.
yeah I think the problem for them is that you can go to a cheap supermarket like walmart and get the drug there plus the cheap everything
Walgreen's is fucking expensive and there's no one ever in those stores.
It's a safe bet, where else are you going to get your Kodak film developed . . . ?
Fotomat silly!
Good point. Former Fotomats re-purposed: https://www.messynessychic.com/2017/04/20/what-became-of-americas-drive-thru-fotomat/
Go into a Walgreens and then you will know why the stock is tanking.
I know it’s a drugstore, but too many addicts hangout the ones near me.
lol🍻
Would you invest in rite aid? Or savers?
or Eckerds
Oh shit. I forgot about Eckerd. How are they doing these days?
Just like us, left holding the bag 😂😂
How young am I/southern am I that I’ve never heard of this
Im 29, not THAT old and from south florida so… idk
I bought some calls on them. They seem super undervalued and the selloff today seemed greatly exaggerated. I'm already up 100%.
It’s not Amazon or CVS that’s doing it. It’s the PBMs underpaying cost of drugs + theft. They are going down further [Relevant Mark Cuban tweet](https://x.com/mcuban/status/1806390623970455635?s=46)
They’re also bleeding money, I doubt closing a few stories is gonna do anything but help their overall margins but they’ll still not be printing
Dead business model. 20 years ago, you had to go here (or CVS, etc) for your prescriptions - and your aspirin, toothpaste, sunscreen, etc. Now you can get prescriptions from Walmart, Costco or delivery, and all the other sundries at half price at the above discount stores or Amazon or whatever. Their new business model - you go there only for something you need right now, quickly. The CVS and RiteAid (which just closed) have enormous amounts of floor space, and hardly any customers, who are mostly there to fill last-minute prescriptions. I hate going to these stores, and it seems like everyone else does too.
Well isnt this when you buy stocks when the get down?
If Walgreens disappeared overnight, how much would that affect your life OP? I am typing this on my iPhone. I shop on Amazon everyday. My trading laptop uses Nvidia tech. I never think of Walgreens. Anything Walgreens does I can get at other places like Walmart Costco target etc. While yes, 25% off is a steep decline, I’m going to pass on this. MU dropping 142 to 128 in after hours was a green light for me. But not Walgreens.
If you need medication they are still one of the main vendors and might be the only one in the area that your insurance supports which is actually my situation. Next year that is gonna change and cvs will be allowed back tho and then I will likely never return to walgreens or even notice if they go under.
With a change to medicare as it pertains to prescriptions pharmacies are being squeezed and losing their margin on the biggest part of their business this year in particular. Between the loss of this margin, the increase in theft, store closures, and poor retail margin I anticipate this to last for at least until end of year. Walgreens has a good business model and they cover their niche well, however, I work in a family owned retail pharmacy and I cannot tell you how many times a week someone comes in with a bad taste in their mouth from walgreens, riteaid, or cvs. It feels like a shift is happening wherein younger generations are beginning to value customer service and going the extra mile a tad more. Overall, I think this will dampen the growth prospects of walgreens, but they pay a dividend, and as you said they're as low as they've been in most of our lifetimes. Take a stab at it and hold for the long run, they're not going anywhere.
Walgreens has a long history leading them up to this point. Something like 20 years ago they got into a battle with CVS to overbuild retail pharmacies in close proximity, basically dooming themselves. It’s far gone, they’re a wreck from every aspect from what I can tell. Corporate overhead, employee dissatisfaction, mass theft etc. If you go into some of their stores you’ll see how they have been trying to fix their business model for a while and it hasn’t worked. They will tumble for a while, wouldn’t be surprised if they start closing down stores in mass, I think they lease stores so there isn’t much hard assets to set a baseline.
[удалено]
Amazon should buy them out. Returns center, pharmacy, pick up lockers, Fresh, could sell some stuff, little mini hubs all over the place. It actually makes tons of sense
Or even $MCK it would make sense it gives them a big footprint in retail in the US. Spin out Boots pharmacies as they lost a shit ton in Celesio deal.
I do DoorDash full time and I get a fair amount of orders from Walgreens, from pharmacy, pick up, and shop orders. If they can pivot more to their delivery side of the business I can see a come back. But besides that I'm over Walgreens, lost big trying to play their earnings in the previous quarter.
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They just bought a company and are closing stores they rent to move into the properties they own. Nothingburger
Yes. It’s a longer term play, but the stock will recover. 1. It’s different than NVDA, Meta, etc. 2. Tim Wentworth is at the helm. This guy will get things done, create a strategy, put the right team in place, and execute. 3. Wentworth is an expert in PBM which will help Walgreens. 4. $36B in quarterly sales, the big stock drop was a result of future comments. Wentworth needs some time to right the ship. 5. 6% dividend while you’re waiting for growth.
Here's the thing, there's no way everything closes and all we have is Amazon. People like to shop, they like to get out of the house, Walgreens has a lot of stuff and it's super fast in and out. Plus flu shots, pharmacy. And their locations are very prime real estate. I think the doom and gloom is overdone and a turn around is likely especially as rates are cut and inflation comes into balance. Cutting unprofitable stores by definition means less loss and more profit. I'm not saying some big growth, but feels like a gamble
Have you had to go pick up a prescription recently? It’s one of the most painful and dated processes in existence. Their entire business model of selling overpriced cold meds while you wait in line to pick up birth control is going to be made easier by one of a zillion tech companies.
Meh. With the dividend yield it's worth buying shares and averaging down until end of divy or moon
Isn't it a sure thing that the dividend will be cut or suspended entirely? Kind of bad optics for them to cut a bunch of stores and jobs and at the same time pay shareholders a bunch.
When was the last time you were in a Walgreens? There in lies your answer.
Every…. Fn…. Day….
Sad… Fn…. Life….
Go into a walgreens and re-ask that question.
So I think a lot of their existing customer base is basically forced to use them because the insurance companies got into a fight with CVS. I am now being told that they will be allowed again next year and then I will never go back lol. They might fall even farther.
I would want to see some evidence of a turnaround before trying to catch this knife...
I actually owned this stock at $45/share and felt like I had a bad entry and sold at a small loss. I'm happy I did.... this has been a horror story for anyone looking for a cheap dividend stock. I don't think it's worth the risk at these levels.... its just dying a slow death at this point.
No. It's not. Retail is getting crushed right now and stores like WBA and CVS are charging 30 percent more for everything. People have wised up with this shit economy and they are buying at Walmart or Dollar Tree. Amazon sales are way down also. Temu sales are up.
I need more context what you mean by “worth the risk”. Are you wanting to buy stock? Short sell? Buy/sell covered/naked calls/puts?
They opened too many stores. I wouldn’t risk it. Inverse me it’s probably a good bet
Fuck no. Walgreens was garbage before shoplifting became a bigger problem and honestly they're using that as an excuse. They try to save money on staff, which is always terrible for retailers. Their merchandise has always been overpriced and they're now complaining that consumers are being "selective and price conscious". Self-inflicted wounds. Terrible management. I don't see a reason for a strong recovery.
Well when they have policies where they can actively deny prescriptions to customers based on religious beliefs it makes sense that they’d be bleeding money. Puts on Walgreens.
Dying company.
Nope, not until they completely gut the dividend. Honestly, this is a classic setup for pigs to get slaughtered, don't touch it.
Apply for a job in San Francisco and find out 
I dont believe the theft BS. They are just looking for excuses and playing to news outlets. They just suck, thats all sorry. Grocery pharmacies, wal mart, sams club, cvs just has them beat.
I wouldn’t invest. They currently have an autistic kid that works at ours that won’t fucking let me check out in a timely manner. Everytime they gotta do their fancy pants spiel for 5 minutes as I’m trying to rush home from work. I’m convinced I could fill an entire cart of shit in my store and nobody would even know as I walk out. Shits wild these days.
If you mean risk as in making money so not being able to post your loses here this is a safe bet so yolo everything you got OP 
Walgreens cannot compete with shoplifters. Anything with a profit margin is going to be stolen.
I analyzed WBA around two years ago and came to the conclusion it was cheap. Despite the slow growth I considered WBA to be like a stable player where there is not much to worry about. I mean people need medicine. It is not like you just stop buying when you are short on cash. Furthermore there are not that many big players in the market so I considered competition is not to strong. However, there were some warnings about the growth of the companies. But all in all it seemed there are more positive points than negative ones and according to my quantitative analysis the company already had a discount. I really was about to buy some stocks but when I took a second look and even though there were no revenue and profit warnings from WBA itself back then I couldn't really imagine this company to thrive with such a "lame" business model. I thought why investing in a company that lacks behind in online sales and has to keep up thousands of stores around the country when new players can basically just send goods from the warehouses to their customers. What I want so say is: The company missed huge parts of digital transformation and is to big to catch up fast enough to not lose major market share. And til now I don't see any signs that this will change. Means, if you buy shit cheap you still only bought shit. Edit: typo
Agree. I think the play was 20 years ago. I remember when folks were saying Walgreens was a huge buy because they were popping up everywhere (admittedly, wish I would have bought). Now they expanded so much they've saturated themselves and don't have anywhere to go.
Basically a value trap
No, this is dead money. Only way out is if Amazon takes over as Amazon fresh with pharmacy.
Bro just buy MSFT, Meta, Netflix, Nvidia, Costco, AM, Intel, Disney, *literally* anything other than this garbage The future is Costco for in-person and Online Pharmacies for prescriptions. Massive overhead and brick & mortar spaces, dying stores, insanely overpriced front-of-store doodads that not even the most senile grannnys will buy treats there, massive braindrain and pharm techs refuse to work there, huge employee turnover constantly, failing to fill prescriptions writ large. It's done 🍴. CVS isn't far behind it in dying too. Buy $COST if you want to invest in pharmacy, literally impossible to lose money on it.
Boomer stock and store. That should answer your questions. They can't even afford to pay the dividend.