🛒 Walmart Plus takes on Amazon Prime!
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Tuesday Close) 3,526.65 +26.34 (0.75%)
NASDAQ (Tuesday Close) 11,939.67 +164.21 (1.39%)
FTSE 100 (5 PM IST) 5956.65 +94.6(+1.61%)
NIFTY 50 (Today's Close) 11,535.00 +64.75 (0.56%)
USDINR (5 PM IST) 73.16 (1 Year +1.44%)
Walmart+ takes on Amazon Prime!
Wall Street reacted favorably to Walmart’s announcement of its subscription service launch date and member perks.
What Happened? Walmart shares rallied Tuesday following the announcement that Walmart+, the much-anticipated subscription service, will debut nationwide in two weeks (September 15). Walmart+ is expected to galvanize the retail giant’s e-commerce business. Out of the Big Box retailer’s 4,700 stores, q2,700 have same-day delivery capabilities.
The service will cost $98 a year or $12.95 per month. Walmart+ members will get unlimited free home delivery of over 160,000 items in stores, including groceries, for a minimum order of $35. They will also get a fuel discount of up to 5 cents a gallon, faster checkouts using the Scan & Go feature in the Walmart app, and new perks will be continuously added over time.It needs to be seen how customers weigh in on the inevitable comparison with Amazon Prime. Although Walmart+ is priced below Prime ($119 a year or $12.99 a month), Amazon offers a host of other services, including video streaming, music, without a minimum cost barrier.Walmart is banking on its grocery business and massive footprint to make a lasting impact on customers to further expand its market share. Walmart+ comes at a time when consumer habits are in flux, and hence possibly open to change. The popularity of the service could influence Walmart’s sales and revenues in the times ahead.
The company is also hoping to bolster Walmart+ with a possible winning bid on TikTok’s US assets in partnership with Microsoft. That should make the brand more appealing to Gen Z. Watch this space for more on this topic.
Market Reaction: WMT shares rallied 6.29% to close at $147.59. Earlier in the day, the stock hit a new 52-week high
Walmart Snapshot 📈
WMT $147.59 +8.74 (+6.29%)
Analyst Rating (34 Ratings) BUY 76% HOLD 18% SELL 6%
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Super Sale: Tesla taps market rally keg, announces $5B stock sale (TSLA -4.67%)
Later Today 🕒
5.45 PM IST: ADP employment report
7.30 PM IST: Factory orders
11.30 PM IST: Beige book
Fun Fact of The Day 🌞
1 pine tree can produce about 80,500 sheets of paper.
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