WMT Stock Building on E-Commerce Strengths
Buz Investors Bullish on Walmart Stock Wal-Mart Stores Inc (NYSE:WMT) surprised everyone with its fourth-quarter results, which showed strong growth in e-commerce sales in the 2016 holiday season. Walmart stock went up on the good results announcement but investor concerns regarding its ability to compete with Amazon.com, Inc. (NASDAQ:AMZN) have been weighing on it. WMT stock closed in the red Thursday and closed at $70.44.
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Bullish on Walmart Stock
The world’s largest retailer has been on an acquisition spree lately and has been doing well in its attempts to challenge the dominance of Amazon. Its acquisition of Jet.com has been fruitful, and Walmart has not stopped shopping for more deals through its online subsidiary. Although the company has a lot of ground to cover and still lags behind Amazon, there are reasons that warrant a bullish outlook on Walmart stock.
The move is significant as an increased number of product offerings in its online store will further boost Walmart’s online sales and benefit WMT stock. Given the vast collection of products on Amazon’s online store, Walmart has to be fast in the catching-up game. However, the acquisition news has not been confirmed by either party.
Reports have come in that suggest that Walmart is planning to rebrand and renovate many of its hypermarkets in Brazil, which has proven to be a difficult market for the retail giant. Brazil is the fifth-largest consumer market but Walmart has not been able to gain much success in the region. However, Walmart is hopeful of a turnaround, as it has planned to spend about $320.0 million over the next three years to upgrade its hypermarkets in the country. (Source: “Wal-Mart Doubles Down in Brazil Despite Sluggish Sales,” The Wall Street Journal, March 12, 2017.)
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