Rite Aid Stock Pops on New FAANG Partnership

This is overshadowing a dreary earnings report and round of bear notes

Rite Aid Corporation (NYSE:RAD) stock is 5.6% higher this morning at $7.51, as news of a fresh FAANG partnership offsets a round of post-earnings bearish brokerage attention. Specifically, the drugstore inked a deal with Amazon.com (AMZN) that will allow for U.S. customers to choose Rite Aid as an Amazon pick-up option.

The well-received buzz is offsetting a bruising note from Evercore ISI, issued in the wake of the drugstore chain's wider-than-expected first-quarter loss. The brokerage firm reiterated its zero dollar price target and "underperform" rating, saying it cotninues "to see no long-term equity value in RAD shares."

Loop Capital also chimed in after Rite Aid's quarterly report, lowering its earnings estimate and cutting its price target to $7 from $10. Overall, not a single covering analyst recommends buying RAD stock, and the average 12-month price target of $8 represents a lukewarm 7.4% premium to last night's close at $7.11.

The stock's long-term trend has been lower, with RAD down 80% year-over-year, and fresh off yesterday's 10-year low of $6.14. Speculators have been positioning for more losses, too. While short interest accounts for a whopping 23% of the stock's available float, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 1.59 puts for each call over the last 10 days.