Wall Street's main indexes saw big gains on Thursday, November 17th drive by Walmart and technology shares. Walmart surged 9.10 percent to hit a record high of $98.01 and Cisco rose 6.3 percent after the company's profit forecast came in above estimates. This puts the S&P and Dow on course for the biggest percentage rise in over two months.
A different article I read discussed that the gains made by Walmart has Amazon and Target sweating from the pressure. With the holidays around the corner, Walmart beat the forecasts for sales and profits and the stock rose to an all time high. Walmart is seeing such growth through its online shopping sales and by acquiring many online shopping sites such as Jet.com, ModCloth, and Moosejaw. Its digital sales rose 50% in the third quarter and that's more than double the growth rate that Target posted for online sales. Walmart shares are way up while other major retailers like Target, Macy's, and Sears are plunging.
https://www.nytimes.com/reuters/2017/11/16/business/16reuters-usa-stocks.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business®ion=rank&module=package&version=highlights&contentPlacement=14&pgtype=sectionfront
http://money.cnn.com/2017/11/16/investing/walmart-earnings-digital-jet/index.html?iid=hp-stack-dom
Its surprising to see Walmart creep up on Amazon, especially in an e-commerce dominated market. It is clear that the acquisitions of these shopping sites have been a huge success. I would not be surprised if firms like Target follow suit and try to stake their claim in the online shopping space.
ReplyDeleteI feel like this rise in Walmart's stock is partly due to the holiday season. Investors could be anticipating the rise in the stock due to Black Friday and increased consumption spending throughout the holiday season. I could see Walmart's stocks along with other brick & mortar's stocks to be inflated throughout the holiday season and then falling back down after the New Year. However on the flip side, I can see Amazon's stock not increasing as rapid as Walmart or other brick & mortar stores but also not dropping after the New Year. I feel this way because shopping surges in brick & mortar stores during this season while online shopping increases but not as dramatically as brick & mortar stores.
ReplyDeleteIt all makes me wonder what will happen in January. If gthese kinds of stocks are keeping the stock market high, what happens when people stop shopping (consuming)after the holidays? Could we be in for a stock market crash in January? What other kinds of companies are keeping the stock market gains so high?
ReplyDeleteThe massive brick & mortar companies always generate lots of business during the holiday season. Therefore, it makes sense that Walmart's stock has risen during the past couple of weeks. However, the retail market is shifting towards online shopping. So, it is possible that after the holiday's Walmart's stock will fall back to it's normal level, and Amazon will continue to grow. Right now, I don't think Amazon has anything to worry about because they seem to be ahead of the game and dominating the retail market.
ReplyDeleteI, too, think that Walmart's stock has risen during the past couple of weeks due to the holiday season. I think that once we move into January, Walmart's stocks will move back to their normal level. In addition, I agree with Drew that Amazon has nothing to worry about. I believe that Amazon is a go-to site all year long when it comes to online shopping. I believe that Amazon's stocks will also rise during the holiday season, but will continue to stay up above competitors even after the season is over. It will be interesting to see if other companies, like Target, will take an approach similar to Walmart's in the future.
ReplyDeleteWalmart’s recent stocks price gains are due to growth in online sales, which will lead Amazon and Target sales lower than they would expect. Walmart’s growth seems surprising because Amazon is known for great online deals. This could be due to a preference change in consumers. Choosing Walmart over Amazon and Target. Due to this increase Walmart might hire more workers and Target and Amazon might have to lower wages or even fire some workers if Walmart continues to steal their sales.
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ReplyDeleteWalmart is a staple to the american way of life. I see them continuing to do big things.
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