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THE DARK KNIGHT: WALMART+
I think Walmart $WMT has some unique advantages in the e-commerce space that categorically edges out Amazon.
Here is a semi-serious 'batman themed' thread about why I think Walmart+ could be a winning dark horse AND their recent Q3 results…
I think Walmart $WMT has some unique advantages in the e-commerce space that categorically edges out Amazon.
Here is a semi-serious 'batman themed' thread about why I think Walmart+ could be a winning dark horse AND their recent Q3 results…
1/ WALMART+ DEETS
Walmart+ comes w/ several benefits:
-Free delivery of anything you’d find in a Walmart (groceries, toys, etc.)
-Save 5 cents/gallon on fuel at Walmart stations (they have those?)
-All for $98 a year vs. Amazon’s $119 a year
-All from your phone/computer
Walmart+ comes w/ several benefits:
-Free delivery of anything you’d find in a Walmart (groceries, toys, etc.)
-Save 5 cents/gallon on fuel at Walmart stations (they have those?)
-All for $98 a year vs. Amazon’s $119 a year
-All from your phone/computer
2/ WALMART IS A GROCERY STORE?
Yes, and they are literally the best. In 2019 they were #1 with 56% of their sales ($288 B) coming from their grocery. Amazon’s Whole Foods is 10th on this list for 2019 with revenues estimated to be about $16 billion coming from only 500 stores.
Yes, and they are literally the best. In 2019 they were #1 with 56% of their sales ($288 B) coming from their grocery. Amazon’s Whole Foods is 10th on this list for 2019 with revenues estimated to be about $16 billion coming from only 500 stores.
3/ WALMART'S EDGE
Walmart is not going to take over Amazon. BUT, when it comes to groceries Walmart has a HUGE advantage w/ their 4,756 U.S. stores (11,501 worldwide) vs. Amazon's 589 physical stores including Whole Foods.
More stores = easier same day deliveries for groceries
Walmart is not going to take over Amazon. BUT, when it comes to groceries Walmart has a HUGE advantage w/ their 4,756 U.S. stores (11,501 worldwide) vs. Amazon's 589 physical stores including Whole Foods.
More stores = easier same day deliveries for groceries
4/ WALMART IS MASSIVE
Numbers are numbing. We're so quick to forget that in 2020 Walmart will do almost 2x the Amazon 2019 revenue. Walmart is just now tapping into e-comm. If they can corner this online grocery market you will be suckered in to buy other products on Walmart+.
Numbers are numbing. We're so quick to forget that in 2020 Walmart will do almost 2x the Amazon 2019 revenue. Walmart is just now tapping into e-comm. If they can corner this online grocery market you will be suckered in to buy other products on Walmart+.
5/ WE GET IT YOU LIKE WALMART+
Let’s get to the nitty gritty and go over some $WMT financials w/ the help of @ycharts:
M Cap: 422B
PE: 23.77
Rev (TTM): 544B
Rev (Qrtrly YoY%): 5.65%
EPS Diluted (TTM): 6.27
$WMT is a monolithic value stock. But this 3Q things got interesting…
Let’s get to the nitty gritty and go over some $WMT financials w/ the help of @ycharts:
M Cap: 422B
PE: 23.77
Rev (TTM): 544B
Rev (Qrtrly YoY%): 5.65%
EPS Diluted (TTM): 6.27
$WMT is a monolithic value stock. But this 3Q things got interesting…
6/ $WMT Q3
Due to COVID people rather shop online. Walmart e-commerce sales grew 79% YoY in the 3Q! This is a HUGE improvement. Chart: @ycharts
EPS: $1.34 vs. $1.18 est.
Rev: $134.7 B vs. $132.2 B est.
$WMT beat earnings despite being 2% in the red & I will explain why...
Due to COVID people rather shop online. Walmart e-commerce sales grew 79% YoY in the 3Q! This is a HUGE improvement. Chart: @ycharts
EPS: $1.34 vs. $1.18 est.
Rev: $134.7 B vs. $132.2 B est.
$WMT beat earnings despite being 2% in the red & I will explain why...
7/ RED DAY
After beating earnings, $WMT opened -2%. Why? Shareholders (me) were on the edge of our seats to receive data on the # of Walmart+ signups. That # was NOT released. Nobody knows how many people signed up for Walmart+ or not & when left to wonder you assume the worst.
After beating earnings, $WMT opened -2%. Why? Shareholders (me) were on the edge of our seats to receive data on the # of Walmart+ signups. That # was NOT released. Nobody knows how many people signed up for Walmart+ or not & when left to wonder you assume the worst.
8/ TRUST THE PROCESS
To be fair Walmart+ launched 9/15/20. I am assuming they want to get a full Q under their belt before they release the #s. The #s will be a huge part of future earnings. I think they will prove to be strong & hopefully corner the same day grocery market.
To be fair Walmart+ launched 9/15/20. I am assuming they want to get a full Q under their belt before they release the #s. The #s will be a huge part of future earnings. I think they will prove to be strong & hopefully corner the same day grocery market.
9/ CONCLUSION
I have been long (& will remain) on $WMT because it is a great company, fair div (1.43%), & it's potential to take on some growth tendencies w/ Walmart+. Thank you for reading this DEEP DIVE & make sure to RT/sub to my newsletter! https://rebelmarkets.substack.com/account
I have been long (& will remain) on $WMT because it is a great company, fair div (1.43%), & it's potential to take on some growth tendencies w/ Walmart+. Thank you for reading this DEEP DIVE & make sure to RT/sub to my newsletter! https://rebelmarkets.substack.com/account
10/ WHERE TO FIND ME
If you enjoy threads like this (that have a fun spin to it rather than just boring #s being spit out) let me know in the comments & I will do more "themed" threads. Follow me on @JoinCommonstock you can see when I buy/sell stocks! https://share.commonstock.com/share?inviter=gannon
If you enjoy threads like this (that have a fun spin to it rather than just boring #s being spit out) let me know in the comments & I will do more "themed" threads. Follow me on @JoinCommonstock you can see when I buy/sell stocks! https://share.commonstock.com/share?inviter=gannon
