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Walmart Shares Soar on Walmart+
Here's what you need to know before 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): 3,145.32 −34.40 (-1.08%)
NASDAQ (Tuesday Close): 10,343.89 −89.76 (-0.86%)
FTSE 100 (5 PM IST): 6176.56 -13.34 (-0.21%)
NIFTY 50 (Today's Close): 10,705.75 −93.90 (-0.87%)
USDINR (5 PM IST): 75.02 (1 Year +9.14%)
The Battle of the Giants
Walmart stocks soar as reports emerge about Walmart+ membership that will compete with Amazon Prime.
What Happened? Share prices of Walmart saw a near 7% spike on Tuesday after a late report emerged, stating the company is ready to unveil its version of Amazon Prime membership. Walmart+ subscription service is expected to go live later this month. The service would cost $98 a year compared to $119 of Amazon Prime.
Once subscribed, members will be eligible for perks such as same-day delivery of general merchandise and groceries, discounts on fuel at Walmart’s gas stations, and early access to a variety of product deals and discounts.
Walmart had initially planned to roll out Walmart+ somewhere between late March and early April. But the Covid-19 pandemic enforced the retail giant to push back the launch date. It is, however, unclear whether the launch will be on a national scale or a regional rollout.
Walmart has seen record sales during the pandemic. However, its presence is still only around an eighth that of Amazon’s. Moreover, there’s a huge gap between the market valuation of these two companies. While Walmart is valued at $337 billion, Amazon is valued at over $1.5 trillion. And Amazon Prime is a key factor in this difference.
Walmart also plans to add video entertainment services in this subscription, the details of which are still unclear. This week the company is planning to unveil an online family entertainment program called CAMP. This program is in partnership with retail startup CAMP and online video tech unicorn Eko. The program will star celebrities like LeBron James, Drew Barrymore, and Neil Patrick Harris. It will be free to all Walmart app users this summer. But it points to the potential of a new service exclusive to Walmart+ members.
Market Reaction: Walmart stocks gained 6.78%, closing at $126.95.
WMT $126.95 +8.06 (6.78%)
Analyst Ratings (36 Analysts): BUY 76% HOLD 21% SELL 3%
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Later Today 🕒
12.30 am IST (July 9): Consumer Credit
Fun Fact of The Day 🌞
The Universe has the Same Temperature Everywhere
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