- CVS, which owns pharmacies as well as operates a pharmacy benefit manager, saw its stock drop sharply on Thursday when it emerged that Amazon has been approved for wholesale pharmacy licenses for at least 12 states.
- Then The Wall Street Journal reported that CVS had offered to buy health-insurance company Aetna and the shares rallied.
- The sudden moves in CVS’ stock price neatly encapsulate a broader shift in corporate America: sit still and risk getting disrupted, or go out and strike a deal.
The chart above says it all.
On Thursday afternoon, Samantha Liss at the St. Louis Post-Dispatch reported that Amazon had been approved for wholesale pharmacy licenses for at least 12 states. The news sent a number of stocks down, including CVS, Walgreens, and Express Scripts.
Less than 90 minutes later, a Wall Street Journal report that CVS has offered to buy health-insurance company Aetna, sending the stock tearing higher.
Corporate America is facing a decision: Go out and do deals to shore up your competitive position, or risk being Amazon’d out of existence.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.