Is Walmart Inc (NYSE: WMT) ‘Dead Money’ ?

Walmart Inc (NYSE: WMT) is presenting a strong resistance to its rivals like Amazon . Walmart is spending a lot of cash to compete with industry giants. Earlier this month, David Seaburg, head of sales and trading at Cowen & Co., said that investors should stay away from Walmart stock because it is “dead money.” The basic reason given by Seaburg was the huge amount of cash spending by Walmart. But some analysts also think that the current spending will result in a massive growth for Walmart.

Walmart is also planning to launch its own video streaming service to take on Netflix and Amazon Prime, a report claimed on Monday. Walmart will reportedly launch the service for $8 a month to get an initial edge in the market.

For this year Wal-Mart Stores Stores's revenue will be around 514,53 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2017's revenue of 500,34 billion USD.

Historical revenues and results Wal-Mart Stores Stores plus estimates 2018

The analysts expect for 2018 a net profit of 14,07 billion USD. The majority of the analysts expects for this year a profit per share of 4,81 USD. The price-earnings-ratio equals 18,34.

For this year the analysts expect a dividend of 2,12 USD per share. Wal-Mart Stores Stores's dividend yield thus equals 2,4 percent. The average dividend yield of the food & drug retailers equals a limited 1 percent.

Recent target prices around 90 USD

Deutsche Bank, Credit Suisse and Morgan Stanley recently provided recommendations for the stock.

Wal-Mart Stores Stores's market capitalization is based on the number of outstanding shares around 268,93 billion USD.

On Thursday the stock closed at 88,23 USD.

Historical stock prices Wal-Mart Stores Stores

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