WalMart Stock Rallies On eCommerce Growth
Stay at home orders are impacting nearly everybody’s lives at the moment including consumer and retail stocks. There is a lot of uncertainty in the world especially in the stock market today and what will happen next. The coronavirus is not showing signs of letting up, which is why stores remaining open are essential at this time.
Businesses such as Amazon, Target, and supermarkets to name a few have all seen positive business effects in regards to remaining open. Walmart is another contender to this list of companies that have remained open. That’s right, none of these businesses have closed despite being in these tough times. These retail winners are seeing big increases in their customer base and their sales.
The coronavirus has caused consumers to start stockpiling goods. These include food, toilet paper, hand sanitizer, and other essential supplies. This is done to avoid needing to go into public and risking catching the virus. Needless to say, Walmart staying in business these last few months has had a very positive impact on the company.
Big-name retail stocks like Walmart (WMT Stock Report) has become a primary source for supplies. Not many stores have remained open during this pandemic. Walmart maintaining its operation has caused new and old customers to flock in to purchase all kinds of goods. As one of the nation’s largest retailers, it was no surprise that Walmart would be positively affected as a result of keeping the business running.
Is Walmart Going Up In Numbers?
Let’s talk about the financials of WMT stock. Online shopping for supplies has become very popular during these times. Walmart e-commerce has jumped by 74% alone. Same-store sales have surged by 10% as well due to people stocking up on supplies and groceries. It has also been reported that it has gained many new customers as well.
WMT stock share prices are also reaching new heights, literally. The all-time high for this retail stock to watch is $132.12 a share. Can you guess when this was reached? That’s right, during this pandemic on April 13th. Shares of the company are still actively trading around $127 which is up from the $115 it was floating at before this pandemic began.
The public really believes in this Walmart stock at the moment. It is interesting to see how the price has risen despite pulling its guidance for the year due to the coronavirus. In addition to pulling their guidance, they also spent $900 million in compensation for employees who remained at work. Yet, their revenue exceeded predictions by nearly a billion dollars.
How Has Walmart Been Helping People In A Time Of Need?
Walmart, being a larger retail stock to watch, has another useful service that has helped people during this time. Walmart offers Express Delivery in the United States. It allows customers to have items delivered in under two hours. In addition to this, they are using more stores to ship out items as well.
This virus season is going to have a lasting effect on this retail stock. More people have discovered the stores as they are of the few to remain open. This will gain a level of trust with consumers who are looking for goods in the future. This is believed to continue even after the stay at home orders have vanished. Think about it this way, if you shopped somewhere and have a good experience you’re bound to go back right?
This rise in customer base can cause WMT stock to soar even higher in the future. It is clear that a smart move was made by keeping the retail giant open and will have positive effects on their business. We’re still living in a world where we don’t know what advancements are going to be made next right now and it can be worrying. As demand continues for stockpiling supplies, these retailers staying open will continue to take customers in with open arms to supply goods in this time of need.