Amazon acquiring Whole Foods

[Value Buy]

www.msn.com/en-us/money/companies/amazon-to-buy-whole-foods-for-dollar137-billion/ar-BBCLSbk?li=BBnb7Kz

Amazon is buying Whole Foods for a very cheap price, and sending stocks of food stores, WMT and target down dramatically this morning

[Value Buy]

Amazon stock up $31.97 this morning
Whole Foods trading at $41.96 which is far down from it's all time high.

Wal Mart
Target
Costco all down around 7% today on the news.

Not sure is another bidder might come in around $50 a share to stop Amazon, but then, Amazon would probably counter at $75

[Value Buy]

 am not sure if this is a correct move for Amazon, as they made their bones on internet sales, and not brick and mortar.
I get it will go for online, immediate delivery options, but still now they are paying regular retail costs for doing business, taxes, insurance, utilities, etc. 

[resolution]

It is interesting how they are expanding into the high end with this purchase and into the low end with their EBT discount. I wonder what their overall strategy is for this.

[Value Buy]

Jun 16, 2017 9:27:05 GMT -5 resolution said:

It is interesting how they are expanding into the high end with this purchase and into the low end with their EBT discount. I wonder what their overall strategy is for this.

Amazon stock had dropped about $50 a share in five trading days, and is up $27 a share this morning.
Super Value a food wholesaler is down 15% today, Kroger down 14% and other mass grocery retailers are down about 7% so traders love the deal right now

[Value Buy]

Kroger dropped about 15% yesterday, another 14% today. Down $10 a share in two days, trading in low $21 level
This is a screaming buy.

[Value Buy]

Jun 16, 2017 9:45:47 GMT -5 @anne81 said:

I pretty much shop only at Whole Foods. I've noticed that amazon has been carrying costco items for awhile. I wonder what their long term plans are.

That is interesting.
WMT purchased Jet.com which carried hundreds of Costco items, and is phasing the Costco items off the website.
I wonder if Amazon will do the same thing to Costco, or carry both lines..........

[Value Buy]

Watching CNBC this morning, they said the joke going around trading desks this morning wss
Jeff Bezos said to Alexa, buy me something from Whole Foods, and she responded by saying, "Buying Whole foods".

[Value Buy]

WBA and CVS are also down sharply on news Amazon is getting into the Pharmacy business.

[The Virginian]

Jun 16, 2017 9:32:50 GMT -5 Value Buy said:

Kroger dropped about 15% yesterday, another 14% today. Down $10 a share in two days, trading in low $21 level
This is a screaming buy.

Kroger was down already because they gave lower future guidance. They have plans to lower prices to fight off Walmart. Now both will be fighting Amazon.

But for the long term, I believe Kroger is a buy right now.

They own Kroger, Harris Teeter , and circle K stores ( Similar to 7-11), Dillions, Fred Myer, Fry's, QFC, Ralphs, Smiths, Bakers, CIty Market, Food for Less, Food Co. , Gerbes, Jay C Food Stores, King Soopers, Owens, Payless Super Markets, I Wireless, Quick Shop, Littman Jewelers, Loaf & Jug, The LIttle Clinic , TomThumb, Turkey Hill, & Fred Myers Jewelers !  ----2,792 stores in 35 States !

Most people only think of them as Kroger which is impressive enough by itself !

eproxymaterials.com/interactive/kr2015factbook/

[Deleted]

I would guess this is about delivery and having a functioning infrastructure to expand their Fresh service.