Shares of online pharmacy Drugstore.com (Nasdaq: DSCM) climbed more than 11.5 percent on Tuesday, gaining 4-1/2 to 43-1/2, after the company announced the opening of the General Nutrition Centers store on Drugstore.com. This move came one day after the stock gained 3-1/8 to 39.
On Monday, Thomas Weisel Partners initiated coverage of Drugstore.com with a buy rating and a 12-month price target of $80. Drugstore.com is one of the e-commerce retailers that could see its revenues grow tremendously during the holiday season, but its competition is fierce. It will be interesting to see how Drugstore.com performs in the next few trading sessions because rival PlanetRx.com, which is waging a price war with Drugstore.com, is going public this week.
In addition to battling for market share, these companies will obviously be battling for investors’ dollars.