Walmart is getting slammed in the stock market after it said it will buy Whole Food Market, a grocery retailer that has been plagued by health issues and a $3.6 billion bankruptcy filing.
The news came Thursday afternoon after the stock was down more than 20% after the company said it would acquire Whole Foods.
On Friday morning, the stock fell nearly 30% as investors scrambled to assess the news.
The news was met with mixed reactions from analysts.
In a note to investors, Goldman Sachs said the news was “incredibly bad news.”
It added that it “cannot imagine a worse outcome for the stock.”
Wall Street was less bullish on Whole Foods, which reported an $18.9 billion loss in the third quarter of 2018.
“This is a bad day for the company,” said Alex Howard, analyst at J.P. Morgan Asset Management.
Howard also pointed to the news as a potential threat to Walmart’s future growth prospects.
While he said Whole Foods is a “strong and solid investment for Walmart,” he also noted that the acquisition would have a “very big impact on its financials.”
Walmart’s shares have risen about 27% this year and have been on a tear.