What Happened to Walgreens?

Walgreens Boots Alliance (WBA) has essentially crashed. I think many of us know this story, seeing it across cities and towns across the country.

However, based on the recent price action, who knows how much longer this will last. It currently trades at 25+ year lows.

Here are a few key reasons why Walgreens stock is in a free fall:


1. E-Commerce Growth: Walgreens has lagged behind competitors like CVS and Amazon in capturing the digital health and e-commerce market. It may be too late.

2. Weak Earnings: Its latest earnings report showed lower-than-expected revenues, and the outlook for 2024 hasn’t provided much optimism.

3. Debt Load: Walgreens' acquisition of Boots and other ventures has left it with a significant debt burden, making it harder to navigate in this high-interest-rate environment.

Is it a dip buy? I think the debt is too much. There don't seem to be any catalysts.

A story I'll watch a little more closely...