Walmart Stock (WMT) Analysis After The 12% Collapse – Feb 21 2018 d Trade Alert – Jan 31 2018

Feb 21, 2018 | Selling Options For Income, Trade Alerts and Ideas, Walmart Stock (WMT)

Walmart Stock WMT

On Tue Feb 20 2018 earnings from Walmart disappointed investors. It wasn’t so much the overall earnings but the e-commerce growth which is flat at 23 percent which was far below analysts estimates. By comparison Amazon’s revenues jumped almost 40%.

However revenue and same store sales were better than expected. Walmart reported net income of $2.17 billion, which is $0.73 cents a share. This compares with $3.76 billion a year earlier which was $1.22 cents per share. If we remove one time charges, Walmart earned $1.33 a share, which was still 4 cents short of analysts’ estimates.

Walmart still predicted 40 percent growth in the e-commerce for 2019 but investors are worried sending the stock down 10% on Tuesday and another 2% on Wednesday Feb 21 morning.

Walmart E-Commerce Is Poor

Overall I was not surprised by their e-commerce results. In my circle of friends who range in age from late teens to over 90, none found buying items on Walmart’s website intuitive, easy or competitive. Amazon’s website is by far easier and more intuitive.

In my survey of 55 of my friends they all complained of late deliveries, partial deliveries, errors in the deliveries. The website offers no forms for contacting customer service and no indication of when a parcel is being delivered or why there is a hold-up.

Over Black Friday I ordered from both Amazon and Walmart. Amazon parcels came without incident and in 2 days without fail. Walmart’s parcels came 10 to 30 days after orders were placed and not all product ordered was ever delivered.

I called the local Walmart who gave me a phone number to call. I called and they advised me they had no way of finding out if the parcels were delayed, product not available, if they would arrive in time for Christmas, basically nothing. I was given an email address which I did email to and received one reply advising that surely “I understood that as the biggest retailer in the world they were swamped with orders”. However no answers as to when my orders were to be filled.

Items ordered from Target were equally poor. Websites could not tell me if product was in-stock at a local store rather than waiting for a delivery. Search engines on the stores did not bring me a list of products that I had requested but instead other products that had no relevance to the search term inputted.

Scrolling through products was pointless and time wasting. Many products had no pictures and many had no details including measurements and weight. Amazon basically kills as they continue to innovate while Walmart and others try to catch up.

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