The Walgreens Boots Alliance (NASDAQ: WBA) edged higher today, recording premarket gains of around 7% before retracting and settling around the $51.35 level – holding gains of just over 1%. The stock has seen a powerful rally in the last few days off the back of various pieces of investor-inspiring news.
Aiming to diversify past the high-street pharmacy, WBA have acquired large stakes in two companies in a wider move to expand their angles of care past shelf supplies – bringing care to homes and inside stores.
The news appears as another cherry on the cake for WBA stock – after jumping from $47.43 on the 13th to $51.33 on the 15th. The stock surge was initially kicked off by the WBA Q4 report, which surprised investors when earnings topped estimates. This was followed shortly after with the public announcement of their expansion plans, again giving WBA stock a further push to the upside.
The Walgreens Boots Alliance will be making large-scale investments in CareCentrix – a home-orientated platform for the coordination of health plans, patients, and providers – and VillageMD, another primary-care network based in Chicago.
This internal and external restructuring is a post-Covid move that is attracting a new investment strategy, based on the restructuring of certain businesses to adapt to a post-Covid world.
Companies are looking to diversify home-based or in-person services in order to meet changing cultural demands. The WBA move towards ‘Walgreens Health’ and the increased focus on in-person care services rather than just products themselves is a strategic move to stay on the sharp edge of relevance.
WBA stock is currently trading around $50.55, losing momentum as we move further into Friday trading.
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