And all of this is sort of the legacy feedthrough of the company relying too heavily and ordering too much of what's called general merchandise, the nongrocery stuff. JULIE HYMAN: Yeah, this decline in earnings for- projected decline in earnings this year will be the second straight year that Walmart has seen a decline in earnings. I think analysts are paying close attention to that throughout this morning's report and some of what the company's chief executives are saying right now. They're forecasting and anticipating sales growth at a lower rate here today. And then, additionally, this is gonna impact their sales growth. That could persist in the near term depending upon where the consumers continue to place their priority and their purchase patterns right now. So some of those areas of weakness that they talked about on the call were toys, electronics, home, and apparel. One of them, you're gonna continue to see persistent pressure on product mix shifts. And there's two things that stuck out to me. There's two things that jump out to me- as you saw me even coming down here for the show, I was still listening in to this earnings call just to get some nuggets of information for our viewers here that isn't directly called out within this earnings release. We've been tracking shares of WMT premarket and they have been lower. Walmart is out with its latest earnings and the retail giant posted a disappointing profit outlook, signaling a rocky year ahead after a strong holiday quarter here. Video TranscriptīRAD SMITH: Let's get back to thing number one here of the day and check in on the health of the consumer. ![]() Thanks so much.Yahoo Finance Live anchors Brad Smith and Julie Hyman discuss the decline in stock for Walmart following fourth-quarter earnings. ![]() The question is just how substantial that blow will really be, Rachelle So federal entities, right, the federal entity is investigating Amazon, ultimately are piling up here.Īnd the thing I keep thinking is, you know, if everyone's trying to land a punch on Amazon, someone's going to get a blow. 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. RACHELLE AKUFFO: According to analysts from JPMorgan, Amazon could finally edge out Walmart as the top US retailer.
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