Amazon One-Day Shipping Push Hits Walmart Stock, Target Stock, Costco Stock, Kroger Stock - Investor's Business Daily

Retail stocks including Walmart (WMT), Target (TGT), Costco (COST) and Kroger (KR) sold off Thursday after Amazon.com (AMZN) said it will move to free one-day shipping for Prime members.

Amazon.com currently offers free two-day shipping as part of its membership, which costs $119 per year. The e-commerce giant hasn't said when the change will kick in, but it's spending $800 million as part the push.

The Amazon one-day shipping move pressures Walmart and Target, which had been finding success by allowing customers to order online and pickup in-store. It's also trouble for Kroger and Costco, which also are expanding online delivery.

During the Amazon earnings call late Thursday, management said customer demand for free, two-hour delivery from Whole Foods Market via Prime Now is continuing to exceed expectations.

Amazon stock rose 0.8% intraday Friday.

Walmart Stock Loses Ground

Shares fell 2.3% to 101.11 on the stock market today. Walmart stock pulled back from near a 104.28 buy point in a flat base, MarketSmith analysis shows.

The current WMT stock base follows a failed breakout in February as well as short-lived breakouts in January and October of last year.

The Dow Jones stock's relative strength line has been on a downward trend for nearly five months, signaling its underperformance vs. the S&P 500 index. Walmart stock has a poor IBD Composite Rating of 55.

Target Stock Gaps Below Key Supports

Target stock slid 5.5% to 77.20, plunging below its 50-day and 200-day moving averages. Shares are off session low.

Costco Stock Falls From Buy Zone

Costco stock fell 1% to 243.07, dipping back below a 245.26 buy point from a 29-week consolidation. Shares rallied strongly from early March after beating fiscal Q2 views. But, aside from the initial pop, the RS line has been going sideways going back to September.