A picture, as is often quipped, says a 1,000 words.
Many on Wall Street that hold healthcare stocks are freaking out about Amazon's looming entry into the space via a tie-up with Berkshire Hathaway (BRK.A) (BRK.B) and JPMorgan Chase (JPM) . And that fear of a healthcare world with pressured profit margins and talent defections to Amazon's Seattle HQ is captured on two fronts.
First, big-cap healthcare stocks such as CVS Health (CVS) , Cardinal Health (CAH) and Walgreens Boots Alliance (WBA) have tanked an average of 13% year to date. For investors who got used to the steady growth of each company, the performance has been far from healthy.
Secondarily, the news flow on Amazon's healthcare ambitions has been hot and heavy. What news publication doesn't want to break that Amazon is launching 100 physical, cashier-less pharmacy stores in 2020. That steady drumbeat of news, which likely continues to weigh on sentiment around some healthcare stocks, is nicely captured (see below photo) by top healthcare analyst Ross Muken at Evercore ISI.
To read how Amazon's inevitable entry into healthcare will impact pharmacies such as Walgreens Boots Alliance and CVS, visit here.
Amazon and JPMorgan Chase are holdings in Jim Cramer's Action Alerts PLUS.