Amazon’s New Whole Foods Acquisition Wipes Billions Off The Value Of Other Retailers’ Stocks
News that internet retailer Amazon is ponying up $13.7 billion to buy grocery chain Whole Foods has resulted in billions of dollars worth of stock value damage in the retail and food categories.
The S&P 500’s retail and food categories were hit particularly hard by the news — especially retail businesses who have expanded into the grocery realm in recent years. The S&P 500 market capitalization loss for just 20 stocks in the retail and food sector was $37.7 billion by Friday afternoon, according to CNBC. On the Dow, Wal-Mart shares dropped 4.7 percent, while Target, Walgreen Boots and Costco shares fell between 5 percent and 7 percent, according to Reuters. The AP reported that Campbell Soup, Hormel, General Mills and Sysco shares fell between 3.2 and 3.3 percent, while United Natural Foods shares dropped 8.6 percent. The Amazon and Whole Foods news even had an impact abroad. Read more at Daily Mail.
