Does anyone know what caused the drop in Family Dollar today?
Answers
2224 points
readytoretire answered one year ago …
It appears to be due to the feeling that if the market is going up, then things are getting better/going to get better, and that means that the lower end stores like FDO will soon see a dropoff in sales. I don't see how their sales will be impacted for at least 6 months. And then only slowly. Well run companies will do well regardless, just do better during some times.
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4086 points
EthanR answered one year ago …
There was also a large drop in Dollar Tree (DLTR), even after reporting terrific sales/earnings. I think some of these stocks were a bit overextended and due for a correction. Traders just bought on the rumor and sold on the news. And I agree with the previous answer. I dont' see things gettng better for quite awhile with the unemployment rate being so high now, and I think many people will continue to shop in the better dollar stores.
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