Mar 23, 2018 - Economy

Target and Kroger ride stock roller-coaster

Photo by Scott Olson/Getty Images

Stock shares in Target and Kroger surged on Friday morning, after Fast Company reported that the two companies were in talks about a possible merger. But then they pulled back, after CNBC reported that the discussions only were about a strategic partnership with Shipt, the same-day delivery service Target recently bought for $500 million.

Why it matters: Investors got excited by the idea of Target and Kroger joining forces, because that could give both companies a better shot of competing with giants like Amazon and Wal-Mart.

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