WMT - Walmart: Can The Good Times Keep Rolling

2024-05-14 03:12:42 ET

Summary

• Walmart's scale and extensive store network have allowed it to compete effectively against e-commerce giants like Amazon, despite skepticism that it could do so.
• The company's investments in e-commerce have paid off, with over $100 billion in revenues coming from its online channel in FY2024.
• WMT is expected to continue its growth trajectory, with analysts predicting average growth of 4.69% in its upcoming Q1 earnings.

It's Good To Be King

In the mass market retail landscape, few things matter more than achieving scale. Those lacking scale lose out on brand exclusivity agreements, have trade payable terms dictated to them rather than dictating them, and, perhaps most importantly, can quickly find the already-thin margins squeezed as competitors zoom in for the kill. Scale is, in large part, the reason why Walmart ( WMT ) is assigned a premium valuation by investors. Of course, Walmart's scale can cut both ways - when times are good, consumers may choose to spend up, bypassing Walmart for some or all items....

For further details see: