WFC - Wells Fargo & Company
44.68 0.00 (0.00%)
After hours: 6:26PM EDT
| Previous Close | 45.25 |
| Open | 45.04 |
| Bid | 44.70 x 900 |
| Ask | 44.75 x 3200 |
| Day's Range | 44.62 - 45.04 |
| 52 Week Range | 43.02 - 59.53 |
| Volume | 13,339,374 |
| Avg. Volume | 19,175,457 |
| Market Cap | 196.865B |
| Beta (3Y Monthly) | 1.19 |
| PE Ratio (TTM) | 9.23 |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | 2.04 (4.51%) |
| Ex-Dividend Date | 2019-08-08 |
| 1y Target Est | N/A |
- MarketWatch
Maximizing shareholder value can no longer be a company’s main purpose: top CEOs
The heads of nearly 200 U.S. companies said Monday they are committing to a move away from the idea that the main purpose of a company is to maximize shareholder value, marking a break with a long-held conviction.
- American City Business Journals
This middle market banking VP is always thinking five steps ahead
Cynthia Nwubani is a vice president and senior relationship manager for Wells Fargo’s middle-market banking group, and she manages relationships with companies that have revenues from $50 million to $2 billion in the North Dallas area.
- InvestorPlace
Things Will Keep Getting Worse For Square Stock
Investors have dumped shares of Square (NYSE:SQ) since the last earnings report. And it's only going to get worse. SQ stock is in a sharp downward trend that shows no sign of letting up. All told, there's a good case for Square stock heading back to the lows around $50 a share.Source: Shutterstock The company's last earnings report was far from good. The company offered specific developments, such as the sale of Caviar to Doordash for modest consideration that really hurt Square's long-term growth narrative. And there's a lot more to be nervous about with SQ stock right now. Let's dive into the reasons why SQ stock is still a sell right now. Is Cash App Really Doing That Great?Cash App pulled in $260 million in revenue in last quarter with a rapid growth rate. At first blush, that sounds fantastic. But there's less here than meets the eye.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Major Headlines Mean Opportunities for Smart Investors For one thing, right around half of that revenue came from Bitcoin transactions. Get rid of that, and Cash App's revenues are down to $135 million for the quarter. Who knows where Bitcoin and crypto will go from here. Maybe the recent recovery is real. Maybe not. Anyone that bet on bitcoin or crypto stocks in late 2017 got clobbered the next year. Don't bet the farm on SQ stock hoping Bitcoin revenues continue to surge.Meanwhile, the more durable main source of Cash App revenue appears to be its instant deposit feature. This, like Paypal (NASDAQ:PYPL), allows vendors to access their cash instantly for a small fee. However, this is quite uneconomic for larger users and thus is unlikely to be a major revenue growth stream forever. Also, the Fed's new real-time payment system may reduce the need for Square's service here. A Bank License May Not Be So GreatThere's also the matter that Square is still trying to get a banking license. It was previously unsuccessful but has made another attempt at regulatory approval.SQ stock bulls point to a banking license as a major catalyst that could shoot the stock back up toward last year's highs. In theory, Square as a bank could add a lot of value for its customers.But taking on the role of a bank adds a lot of headaches and red tape as well. You have to worry about compliance, capital reserves, and all the other stresses of post-financial crisis era banking. In addition, customers that currently pay for services such as instant deposit are going to expect a lower fee experience if they bank with Square as well.On top of all that, are the people bullish on Square as a bank looking at the same financial markets that the rest of us are?The big banking shares like Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC) are performing quite poorly in the market this year. Goldman Sachs, in particular, with all its customer-focused new innovations such as the Apple Card is getting no respect at all. If the market is petrified of interest rates and recession risk for banks, why is it going to give Square stock huge credit for entering this out-of-favor industry? Square Stock Is Really ExpensiveA big issue for SQ stock going forward is that the company still makes hardly any money. In the past, this was easier to explain because the company was purportedly investing heavily in loss-making growth operations like Caviar that would pay off in spades later. But Caviar didn't. And with Square shedding its money-losing operations, in theory, it should look a lot more profitable going forward.And yet, it's not. Adjusted EBITDA is likely to come in around $400 million for this year. Given Square's market cap, this means investors are paying in the neighborhood of 70x EBITDA for this business. That's absolutely absurd. You can justify 20 or 25x for a fast-growing tech company with good cash flows. Square isn't that fast-growing, especially without Caviar, and its operational profile isn't that amazing either.In fact, Square should probably trade at a discount to tech peers due to the credit exposure and recession risk (since its client base is primarily smaller businesses). Instead, the market is pricing SQ stock as though it were as good as the hottest of the cloud software companies. Unless Square's business performs exceptionally well going forward, people are going to get burned here in a major way. SQ Stock VerdictI know Square stock is down a lot, and you might want to buy the dip. But there are better tech plays at this time. SQ stock was profoundly overvalued before; a 25% drop has hardly fixed the valuation issue. In addition to the above concerns, consider analyst sentiment. * 10 Mid-Cap Dividend Stocks to Buy Now You have various analysts with hold ratings or tepid sorts of recommendations for SQ stock with price targets in the $80s or higher. With the stock now under $65, analysts will need to lower their targets, particularly with growth avenues such as Caviar disappearing. I wouldn't be surprised if analyst downgrades and price targets help push Square stock back down to 52-week lows around the $50 mark.At the time of this writing, Ian Bezek owned GS and WFC stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Things Will Keep Getting Worse For Square Stock appeared first on InvestorPlace.
- American City Business Journals
Wells Fargo to close branch as it exits SouthPark building
The bank last week sold the 44,000-square-foot Wells Fargo Building, at 4525 Sharon Road, for about $13.7 million to Levine Family Office. Wells will remain the sole tenant until March 2020.
- American City Business Journals
Wells Fargo makes changes to Boston commercial banking team
Alongside a leadership shuffle, the bank has combined different units targeting small businesses, mid-sized businesses, and governments and institutions.
- Bloomberg
Finance Needs People Who Work Well With Robots
(Bloomberg) -- Today, it’s not just humans competing for work in banking. Machines are becoming a threat to warm-blooded number crunchers worldwide. Indeed, almost one-third of financial-services jobs could be displaced by automation by the mid-2030s, according to a report by PricewaterhouseCoopers LLP last year.Despite those stark forecasts, some optimists argue that the rise of machines at banks isn’t simply taking away jobs, but rather changing their definition and adding some roles.Job seekers with expertise in artificial intelligence, machine learning, and data science are among the most in-demand candidates in finance, according to hiring sites Glassdoor, LinkedIn, Hired, and ZipRecruiter. It’s not only disrupters such as Square Inc. or Stripe Inc. hiring this talent; legacy financial companies such as JPMorgan Chase, Capital One, and Morgan Stanley are scooping these people up as well. In the U.S. financial sector alone, job postings that list these big data skills as requirements increased almost 60% in the 12-month period ending in July, according to LinkedIn.Business and finance professors who are preparing students for future banking careers are also seeing the trend. Data scientist is the “hottest job function” now for employers, says Andrew Lo, director of the MIT Laboratory for Financial Engineering in Cambridge, Mass.Lo says data portfolio managers, who are charged with maintaining and maximizing the value of a company’s data assets, also are gaining importance. “We already have that happening informally because chief technology officers are playing that role,” he says. “But this has become a much more business-oriented set of challenges that the typical CTO might not be equipped for, so I think that’s going to evolve over time.”While machine learning has the ability to “augment” jobs and enhance the performance of organizations, it will also present risks and the need for “AI auditors” at banks, says Theodoros Evgeniou, a professor of decision sciences and technology management at Insead in Fontainebleau, France. As machines make more decisions in banking, he says, ethical and legal concerns will be raised that need to be addressed at the board level.“Let’s say you’re a bank and you’re giving credit based on credit scoring and machine learning, and your models are discriminating certain populations of people,” Evgeniou says. “If you’re then sued for being discriminatory, who is liable for this? If [the models] discriminate, you are liable.”There are also ways machine learning may indirectly create jobs. For instance, automating tasks previously done by humans in the asset management industry should theoretically reduce costs. Lower fees will likely increase demand for financial services and, subsequently, the need for more staff to service new customers, according to Guo Bai, a lecturer of strategy at China Europe International Business School in Shanghai. “It will probably be easier to serve clients that were previously excluded from financial services,” she says. These new clients may require a more human touch, Bai says, meaning more client relationship managers will be needed. Machine learning may also provide an opportunity to reinvent a career. While it’s not easy or affordable in all cases to go back to school, some financial sector employees who find themselves displaced by technology could be in a position to reskill. “Certainly in the financial sector people are already pretty highly trained, so I do believe they can be retrained to focus on data science and all of the job functions that are required to support data science analytics,” says MIT’s Lo. “That’s not true in all industries.” Help WantedAI expertise is becoming one of the most desired skills in finance. Think you have what it takes to automate the banking industry? Here’s a glance at some of the jobs requiring experience with AI, machine learning, or deep learning. Descriptions are based on ads on company sites and online job boards as of Aug. 5. Median base salaries for the roles are estimates from Glassdoor, as pay information wasn’t provided by the companies.Artificial Intelligence Platform Support EngineerEstimated median base pay: $116,760Main duties: One of the world’s largest banks is seeking an engineer capable of managing the massive server farms that are essential for its AI platform. The work can be fast-paced and high-demand. Expect to be on call.Must-have: Several years’ experience with middleware products and open-source operating systems, as well as a history of application development and implementation. Based on a job advertisement on Wells Fargo & Co.’s website.Artificial Intelligence Manager/ArchitectEstimated median base pay: $96,898Main duties: One of the “Big Four” accounting organizations needs “architects” with creative ideas for developing and deploying AI components at large companies. The job could involve working on anything from chatbots and virtual assistants to vision and language processing.Must-have: Among other things, the company is looking for at least a couple of years’ experience working with cognitive computing technology, IBM Watson, neural networks, augmented intelligence software for financial services, and cloud platforms.Based on a Deloitte job advertisement posted on LinkedIn.Senior Python Engineer—Machine Learning PlatformEstimated median base pay: $113,827Main duties: This bulge-bracket bank seeks an engineer fluent in high-level programming languages. The role comes with many responsibilities, but you’ll be on a team in charge of building pipelines that feed massive data into machine learning models for real-time predictions.Must-have: The bank cites lots of required technical experience, including a track record of developing distributed systems using Python.Based on a job advertisement on JPMorgan Chase & Co.’s website.Conversational AI Content StrategistEstimated median base pay: $59,306Main duties: If anyone has ever said you’re a great conversationalist, this job might be your next career move. You’ll be working on an AI-powered, voice/text digital assistant and “the hub” of the bank’s conversational commerce strategy. The strategist will drive the assistant’s “conversation design with brand flair.” Must-have: A background in writing and editing with some work in conversational user interfaces, AI, and chat or interactive voice responses.Based on a job advertisement on Bank of America Corp.’s website.Artificial Intelligence—Senior Digital Product ConsultantEstimated median base pay: $75,265Main duties: This role is part of this bank’s expansion plans for its virtual-assistant technology. It’s seeking someone to work on “future state” integration of its AI agent. The product consultant will lead its development during all stages, which include building, testing and acceptance, quality assurance, and reporting. Must-have: An interest in emerging technology trends and several years in a management role in a financial-services organization.Based on a job advertisement on Bank of America’s website.Machine Learning Platform Web SpecialistEstimated median base pay: $57,054Main duties: A love for data visualization might help in this role. The specialist will be tasked with creating web-based user interfaces for the bank and have a multitude of responsibilities, including constructing “visualizations that are able to depict vast amounts of data.”Must-have: A bachelor’s degree in computer science or a similar field and a strong understanding of machine learning algorithms, high-level programming languages, and neural networks. Experience with HTML, cascading style sheets, and web standards is required.Based on a job advertisement on JPMorgan’s website.Quantitative Analytics Consultant—Decision Science and Artificial Intelligence Financial Crimes Model ValidatorEstimated median base pay: $105,804Main duties: This bank is advertising a heavy-duty-sounding role with responsibilities to match. The hired candidate will work on a team responsible for validating and approving the machine learning and AI models behind marketing, credit scoring, financial-crimes detection, and fair-lending practices.Must-have: Several years’ experience in an advanced scientific or mathematical field. A background in sanctions screening and anti-money-laundering analysis will also help.Based on a job advertisement on Wells Fargo’s website. Note: Glassdoor uses a proprietary machine learning algorithm to approximate median base pay by job title, industry, and employer size. To contact the authors of this story: Siobhan Wagner in London at swagner33@bloomberg.netShelly Hagan in New York at shagan9@bloomberg.netTo contact the editor responsible for this story: Stryker McGuire at smcguire12@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- American City Business Journals
Growing mortgage market attracts more lenders to Sacramento
The Sacramento mortgage market is getting more competitive, with steady growth in the number of lenders over the past five years.
- Zacks
Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC) closed at $45.26, marking a +1.96% move from the previous day.
- GuruFocus.com
Bank Stocks Will Be Safe Havens in Tumultuous Times
Several signs have raised investors' anxiety on the market, but financials will remain solid investments Continue reading...
- Kiplinger
All 47 Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.Berkshire Hathaway held positions in 47 separate stocks as of June 30, according to the most recent regulatory filing (Aug. 14) with the Securities and Exchange Commission - down from 48 in the first quarter of this year, as he dumped USG Corp. (USG). But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Some holdings are so small as to be immaterial leftovers from earlier bets the Oracle of Omaha has yet to completely exit.And perhaps most importantly, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise 80%. Banks and airlines, to cite a couple of sectors, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks actually were picked by portfolio managers Todd Combs and Ted Weschler.Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio. SEE ALSO: 50 Top Stocks That Billionaires Love
- GuruFocus.com
52-Week Company Lows
Wells Fargo tops list of stocks that have fallen to annual lows Continue reading...
- GuruFocus.com
Stocks That Fell to 3-Year Lows in the Week of Aug. 16
Wells Fargo tops the list Continue reading...
- Motley Fool
4 Industry Leaders With Ultra-High Dividends
Some of the biggest brands in the market pay some of the biggest dividends, too.
- Yahoo Finance
These are the largest companies in each U.S. state
Do you know what the largest company is in your state?
- Bloomberg
Nvidia Tops Estimates for Sales, Profit on Game-Chip Rebound
(Bloomberg) -- Nvidia Corp.’s second-quarter sales and profit topped analysts’ estimates, suggesting that a slump in orders may be easing amid a revival in demand for graphics chips and parts used in data centers. The stock rallied in late trading.Revenue in the quarter that ended July 28 was $2.58 billion and profit excluding certain costs was $1.24 a share, the Santa Clara, California-based company said in a statement on Thursday. Analysts, on average, had estimated adjusted earnings of $1.14 a share on sales of $2.54 billion.Sales in all business lines rose from the previous quarter, Nvidia said, a sign the company is addressing challenges that had stalled growth. Chief Executive Officer Jensen Huang has argued that a slowdown in orders for computer-gaming chips and processors for artificial intelligence tasks was temporary as customers worked through stockpiles of unused parts.Revenue has now shrunk from a year earlier for three straight quarters, and Nvidia forecast another decline of about 9% for the current period. Still, the 17% contraction in the second quarter was narrower than some analysts had projected, and the rate of decline is slowing. That may indicate customers are beginning to place new orders again.Gaming-chip sales came in at $1.3 billion, up 24% sequentially. Revenue from Nvidia’s second-biggest business, data center, climbed 3.3% from the prior period to $655 million.According to some estimates, that rebound in data-center revenue fell short. Wells Fargo analyst Aaron Rakers had predicted unit sales of $685 million, and he wrote in a note that the consensus estimate was about $669 million. On a conference call to discuss results, Nvidia executives faced multiple questions on the prospects for the business.On the call, Huang said demand for graphics chips used in servers was improving across the board, excluding a couple of so-called hyperscale data-center operators who don’t give Nvidia much insight into their plans. He declined to say when the business will return to annual growth, but maintained his optimism that artificial intelligence computing is the biggest-ever opportunity for his company.Nvidia’s detractors say that stiffer competition is the cause of the company’s struggles, but Huang said rivals aren’t eroding growth. Nvidia pioneered the use of graphics chips to run AI software in data centers, while Nvidia GeForce processors have been the main choice for PC gamers wanting the highest resolution action. Now, Intel Corp. and Advanced Micro Devices Inc. are offering rival products in these markets.“The competition should show up with something,” he said in an interview. “AI is going to be a large market for everybody and the growth is ahead of us. The bottom is behind us.”Nvidia shares rose more than 6% in extended trading following the report. Earlier, they slipped about 1% to close at $148.77 in New York.Net income in the second quarter was $552 million, or 90 cents a share, down from $1.1 billion, or $1.76, in the same period a year earlier.The company said sales in the current period will be about $2.9 billion, plus or minus 2%. That compares with an average analyst estimate for revenue of $2.98 billion, according to a Bloomberg survey. Adjusted gross margin will be 62.5%, Nvidia said.(Updates with CEO comments in eighth paragraph)To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
3 Battered Bank Stocks to Bail On
Plunging bond yields have sent the stock market into a tizzy. And "inverted yield curve" is the new buzzword littering news sites everywhere. In today's gallery, we'll shed light on what all the fuss is about and identify three bank stocks to sell.When investors see turbulent seas on the horizon, they seek shelter. And nothing is perceived as a safer place to hide from the storm than treasury bonds. The demand surge sends prices to the moon and yields (which move inverse to prices) into the basement. Buyers' appetite has been so voracious that the 30-year treasury yield just dipped below 2% for the first time ever.The beating in long-term rates has been so severe that they've fallen below short-term rates creating the so-called yield curve inversion. It's a signal that has precipitated every recession in the modern era and has investors justifiably spooked.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall And that brings us to bank stocks. When long-term interest rates fall below short-term interest rates, it puts a damper on their earnings potential. Throw in the specter of a recession, and you have a toxic brew poisoning the performance of financial companies.Let's take a closer look at three bank stocks to sell. Bank Stocks to Sell: Bank of America (BAC)Bank of America (NYSE:BAC) has been a ship without a rudder this year. Ever since its January rally reversed the fourth-quarter beatdown, BAC stock has been chopping in a range, unable to pick a direction. This month's market bloodbath has pushed BAC 15% off its highs.The stock is now testing the lower end of its range and is threatening a breakdown that would deal a nasty blow to its technical posture. Given the speed of last year's descent and the January rebound, there isn't much support between $26.50 and $22.50. The downside follow-through could be swift if buyers don't emerge to defend the $26.50 zone.Source: ThinkorSwim Even if we don't breach support, Bank of America's stock chart is a hot mess that will need time to heal. If you want to speculate on further downside, buying the November $28/$23 put spread for $1.80 is a solid idea. The risk is $1.80, and the reward is $3.20. Wells Fargo (WFC)Wells Fargo (NYSE:WFC) has fared worse than BAC this year. It completely reversed January's strength and is fast-approaching December's pivotal low of $43. If anything, the relative weakness makes WFC a more tempting target for bear trades and a better bank to bail on if you own it.All major moving averages are pointing lower, making it impossible to spin a bullish narrative. With the price submerged beneath these trend-following indicators, rallies remain suspect and strength is made for selling.Source: ThinkorSwim A break of $43 would push WFC stock to a six-year low and complete a multi-year top on its trend. If you're holding out hope that bulls swoop in to save it, then consider $43 your abandon ship point. * 15 Growth Stocks to Buy for the Long Haul To bank on additional weakness, consider buying the November $45/$40 put spread for $1.80. The risk is $1.80, and the reward is $3.20. Regional Banking ETF (KRE)Our final pick aims for the entire banking sector via the Regional Banking ETF (NYSEARCA:KRE). Its diversified holdings offer exposure to mid-size banks across the nation. It is thus very sensitive to economic shifts that adversely impact the sector.The past six months have seen a vicious tug-of-war between bulls and bears. This week's breakdown finally declared sellers the victor and spells trouble for KRE stock's technical posture. Yesterday's drop has the fund testing the $49 support area. A breakdown could send it back to December's low at $44.Source: ThinkorSwim If you believe bears will continue to roam through year-end, then buy the December $50/$45 put spread for $2. The risk is $2, and the reward is $3.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 3 Battered Bank Stocks to Bail On appeared first on InvestorPlace.
- Zacks
Wells Fargo Ratings Affirmed by Moody's, Outlook Raised
Wells Fargo's (WFC) strong balance sheet and ability to perform despite asset cap impress the ratings agency.
- Zacks
Why Is Wells Fargo (WFC) Down 2.7% Since Last Earnings Report?
Wells Fargo (WFC) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- MoneyShow
The Timely Ten- Today's Best Blue Chip Dividend Payers
Can a quarter of a percent rate cut, or any amount of rate cuts for that matter, address or even alleviate the market's concerns? asks Kelley Wright, dividend expert and editor of Investment Quality Trends.
- GuruFocus.com
Leon Cooperman's Top 5 Buys in the 2nd Quarter
Omega family office chairman discloses stake in Berkshire bank Wells Fargo as yield curve inverts Continue reading...
- Motley Fool
Your Guide to the 10 Biggest Bank Stocks
Here’s your guide to the largest publicly traded financial institutions in the U.S.
- American City Business Journals
Former Wells Fargo tech and VC banking leader dishes on new bank's future in Denver
Matt Wysong’s banking career has centered on transformative technology companies. “Being at the center of the innovation economy is very attractive,” Wysong said. “When you are able to provide services that help these companies scale and grow while they are creating meaningful products, it’s very exciting.” In 2014, he launched Wells Fargo’s (NYSE: WFC) Mountain and Midwest technology and venture banking division.
- American City Business Journals
Blend CEO talks hiring (they are) and real estate (they need more)
The startup is giving a lot of thought to real estate these days as the CEO tries to accommodate the fintech's growth and hiring.
- Moody's
Wells Fargo Finance LLC -- Moody's affirms Wells Fargo's ratings (holding company senior at A2); changes outlook to stable from negative
Rating Action: Moody's affirms Wells Fargo's ratings; changes outlook to stable from negative. Global Credit Research- 13 Aug 2019. New York, August 13, 2019-- Moody's Investors Service has affirmed all ...
- InvestorPlace
Think Amazon Will Save Rite Aid Stock? Think Again.
If you're thinking of shopping for Rite Aid (NYSE:RAD) stock on its much-hyped, package pick-up collaboration with Amazon (NASDAQ:AMZN), be prepared to buy some Tylenol or Pepto Bismol for home delivery at the same time. Let me explain.Source: Shutterstock Chipotle (NYSE:CMG), Equifax (NYSE:EFX) or Wells Fargo (NYSE:WFC) -- each brand has bounced back in recent years from high profile wrongdoings. The thing is, scandals can be sorted out and time helps in healing those past wounds. Too bad, that's not the problem with RAD stock.Rite Aid's problem is the same one many once-great brick-and-mortar shops are going through or have bowed to already. More and more buying is transacted online with those goods being dropped straight to your doorstep. And chances are, Amazon has been a key player in this bearish market dynamic, even for a storefront like RAD stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSure, Amazon has backed away from entering the prescription business. But Amazon already sells a line of over-the-counter private-label medicines. Its Basic Care line offers a range of products from ibuprofen to allergy medicine. Amazon is also pursuing the medical community to purchase common and disposable items from rubber gloves, syringes to gauze from its Amazon Business site. And that's certainly at the expense of RAD stock.RAD stock has another big problem too. Rite Aid isn't a store known to attract foot traffic from the all-important millennial demographic. Sorry … Rite Aid just isn't "cool." And sadly, even the population Rite Aid has captured is getting older and less likely to be hopping in the car or walking to Rite Aid to pick up stockings, Certs and a prescription. * 10 Real Estate Investments to Ride Out the Current Storm But before I pronounce RAD stock as being D.O.A., could Amazon be both a villain and savior for RAD stock? There are investors who believe the new Amazon Counter pick-up option for Amazon purchases at Rite Aid stores could be a prescription for success.The bull case rests on the hypothesis that influential millennials flush with cash, who otherwise wouldn't be caught stepping foot in a Rite Aid store, will now be waiting in line by the dozens and invariably be making additional impulse purchases from Rite Aid before exiting. RAD Stock Monthly ChartOn the surface, the deal sounds kind of interesting. But don't hold your breath on RAD stock. Most Amazon packages aren't going to be dropped off at Rite Aid. And for those few packages that aren't received at one's doorstep, office or neighbor's house, consumers have a choice of where they want to pick the delivery up from. And guess what? That's probably bad news for Rite Aid's service.The fact is for those few boxes, packages and envelopes which don't go to the doorstep, there's already options for picking up merchandise. Consumers have a choice of Amazon Lockers at various convenience stores and even standalone Amazon storefronts to pick up items from. Further, with the partnership just underway and starting with 100 Rite Aid stores but promising 1,500 by year end, it's still going to be a tough proposition to get Millennials, let alone anyone else that normally wouldn't be in a Rite Aid already, into a Rite Aid store and make an actual difference in RAD stock's bottom line. * 7 Stocks the Insiders Are Buying on Sale Think about this as well, what's to stop Amazon from opening up its Counter distribution network into other retailers and hindering Rite Aid's chances even more? And finally, let's be real … given today's existing and more discreet options where communication is minimized and hassle free from checkout lines, the choices for millennials to pick up packages were already in place before Rite Aid's Amazon Counter.So, before you consider investing in Rite Aid stock, take a look at the stock chart and note that while the ginormous bottoming pattern certainly holds the allure of something special, you need to be smart. Think long and hard about today's message, the obvious, existing problems the company faces and RAD's nearly 30% in short interest as fair warning.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Think Amazon Will Save Rite Aid Stock? Think Again. appeared first on InvestorPlace.
