This is an investigation the FTC has had going into Amazon Prime for about two years. What the FTC and Chair Lina Khan are saying is that this is a violation of the FTC Act and the Restore Online Shoppers Confidence Act. Let's look at today, right? Today, the FTC sued Amazon alleging it's tricking customers into signing up for Prime and making it more difficult to cancel. However, what this does bespeak is kind of a larger trend, the worse that we're seeing in terms of increased federal scrutiny both on big tech and on Amazon, especially. And none of them for the time being are expecting the Sanders probe to have any material effect on Amazon's bottom line. I was doing some texting around yesterday with some analysts on Wall Street. What can you tell us about that?ĪLLIE GARFINKLE: Yeah, Rachelle, this isn't the first time that Bernie Sanders has really made a move on Amazon asking them to improve their labor practices. Senator Bernie Sanders announced that he's starting an investigation into Amazon for their safety practices. And Amazon does seem to already be in a tight spot at the moment. RACHELLE AKUFFO: Something does put them in the spotlight. If anything, what I'd say is that it will cause- it will cause there to be a heat up in the battle between Amazon and Walmart moving forward. And, of course, Amazon getting ahead here does not mean the fight is over by all means. Now, if this does come to pass, Amazon will beat out Walmart as the country's largest retailer and what would be, frankly a momentous shake up for both companies. That's also while they have more than 42% of the US e-commerce market in terms of market share. For 2023, JPMorgan is modeling Amazon's US gross merchandise volume, growing more than 11% to 477 billion. And now, JPMorgan is actually expecting to see 2023 show some growth, especially from Amazon. 2022 marked the first year since 2009 that US e-commerce grew under 10%. We've seen we saw that pandemic boom and then a pullback in 2022.Ī stat for you. And that's despite a rocky few years, right? Legendarily, it's been a really up and down time in e-commerce. The message here is this from JPMorgan, Amazon's long-term e-commerce. Hey, Allie.ĪLLIE GARFINKLE: Hi, Rachelle. We're joined now by Yahoo Finance's Allie Garfinkle to discuss this more. And analysts say the online space is dominated by Gen merch, and Amazon Prime is a powerful market share tool. The company benefited during the pandemic. For comparison, its industry has an average Forward P/E of 12.56, which means Walmart is trading at a premium to the group.RACHELLE AKUFFO: According to analysts from JPMorgan, Amazon could finally edge out Walmart as the top US retailer. Walmart is holding a Zacks Rank of #2 (Buy) right now.ĭigging into valuation, Walmart currently has a Forward P/E ratio of 24.82. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. These revisions help to show the ever-changing nature of near-term business trends. Investors might also notice recent changes to analyst estimates for Walmart. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $159.34 billion, up 4.24% from the year-ago period.įor the full year, our Zacks Consensus Estimates are projecting earnings of $6.21 per share and revenue of $636.67 billion, which would represent changes of -1.27% and +4.15%, respectively, from the prior year. The company is expected to report EPS of $1.68, down 5.08% from the prior-year quarter. Investors will be hoping for strength from Walmart as it approaches its next earnings release. This has outpaced the Retail-Wholesale sector's gain of 3.31% and lagged the S&P 500's gain of 4.86% in that time. Prior to today's trading, shares of the world's largest retailer had gained 3.94% over the past month. The stock outpaced the S&P 500's daily loss of 0.53%. In the latest trading session, Walmart (WMT) closed at $154.46, marking a +0.19% move from the previous day.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |