Rite Aid stock plummets after disappointing third-quarter results

Yahoo Finance Live anchors discuss why Rite Aid stock is tanking on Wednesday afternoon.

Video transcript

DAVE BRIGGS: My play is Rite Aid, shares getting crushed today on the heels of its latest earnings report. The pharmacy reporting a quarterly loss, though smaller than expected one, and lowered its full year financial guidance with CEO Heyward Donigan saying on the call, quote, "We're seeing signs that consumers remaining cautious, particularly in demand for discretionary seasonal products, which has driven increased markdowns.

Now, the primary shortfall for Rite Aid, plummeting demand for COVID vaccinations and testing, as you might expect. They're all seeing that. Shares down more than 17% and nearly 75% this year. Walgreens down, CVS down, albeit slightly. It appears there is some collateral damage here. Look, we are never going back to a time where people are rushing out to Walgreens and CVS for their COVID vaccination. So this is natural. They're going to have to find some way to replace that revenue.

SEANA SMITH: Yeah, certainly, and when we talk about the fact that people are pulling back on their spending, thinking twice certainly about discretionary spending, what that could look like in the coming quarters, those challenges, at least for now, don't seem to be going anywhere, which is a big concern here for the Street.

A number of analysts lowing their price targets on the stock after these reports. Deutsche Bank lowering its price target to 3 bucks a share. Evercore also slashing its target for the stock. Where we're trading today is right around that all-time low. So at least for right now, things aren't looking too optimistic for Rite Aid, but we shall see.