Despite strong quarterly results, Walgreens was hit hard in early trading Thursday.
Shares of the drugstore chain were off more than 6.5% as of 10:20 a.m. ET after initially surging.
The selloff comes despite optimistic news from the company, which raised its forecast for the year and reported better-than-expected third-quarter results. Walgreens Boots Alliance said it expects growth of 10% in adjusted earnings per share for the year compared with previous guidance of mid-to-high single digits.
Shares initially surged 3% in premarket trading, but the dip seems to be related to concerns that the revenue associated with COVID-19 vaccines will fall off soon, as demand for vaccinations across America dips precipitously.
Continued pressure from new rivals, such as Amazon, may also be weighing on investors’ minds.
As part of its earnings, Walgreen focused on its turnaround plan, which includes using automation to give pharmacists more time to answer customers’ questions and an increased use of digital tools, such as its app.
The company is also hoping to reduce spending over the next year to the tune of $2 billion.
“While challenges lie ahead, we are in a strong position to grow and innovate our core retail and pharmacy businesses for the future,” said CEO Rosalind Brewer in a statement. “We are accelerating our investments to advance our operational excellence, including technology innovations that support mass personalization, pharmacy of the future, and the next phase of growth in tech-enabled health care.”
Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.
