Walmart Inc (WMT Stock) Acquires 80% Stake In Flipkart Pvt Ltd

• Walmart Inc. announced its Q2-2023 report on 27 August 2023.
• Walmart made a $3.5 Billion investment in Flipkart.
• WMT stock closed at $160.27 with a past intraday loss of 0.80%.

Walmart Inc., the world’s largest employer, has purchased $3.5 Billion worth of shares in Flipkart with the U.S Securities and Exchange Commission. Walmart has bought a stake in Flipkart from hedge fund Tiger Global at a $35 Billion valuation. The U.S.-based Walmart finalized the acquisition of a 77% stake in Flipkart, and it has increased its stake to 80% with the current investment.  

Walmart Inc. stock began its price journey from an annual low of $136.09 and surged about 19% toward the annual high of $162.99 since the beginning of 2023. It has spiked multiple times with an uptrend flow while attaining higher highs and higher lows. WMT stock price is also currently moving  in a consolidation zone between $162.78 and $157.44. 

In the previous intraday session, WMT stock was hovering near the $160 range while witnessing a decrease of 0.80%. The astonishing performance of Walmart stock encouraged investors in the market, while the increase in dividend yield in the current fiscal year was also a significant psychological factor.

Walmart Inc. posted its dividend yield payout of 1.40%. However, the Director of Walmart Inc. approved to raise its annual cash dividend for the fiscal year 2024 to 2.28% per share, reflecting an increase of roughly 2% from the 2.24% per share payout for the last fiscal year.

Q2-2023 Financial Report of Walmart Inc.

Walmart released its second quarter’s report on 17 August 2023. The Q2-23 consensus reflects an impressive increase of $1.40 Billion in revenue. Moreover, the EPS (earning per share) also reflects an increase with a surprise of $0.134 EPS.

The reported $1.84 EPS outperformed the estimated figure of $1.706 EPS with a surprise of 7.84%. Meanwhile, the reported revenue was $161.63 Billion compared with the estimated revenue of $160.22 Billion, with a gain of 0.88%.

Walmart’s stock price is trading above the 20, 50, 100, and 200-day EMAs, reflecting vigorous strength in the market. Moreover, the RSI is at 56.25 points, which indicates bullish dominance, and the price is in the overbought region.

The CMF is at -0.15, which denotes a rise in sellers’ participation, while the WMT stock price might observe a pullback after attaining an annual high. The market capitalization of Walmart Inc is $435.05 Billion, with an average volume of 4.66 Million shares.

Conclusion

The new investment by Walmart Inc. in e-commerce giant Flipkart elevated the stock price further. Investors look confident about further investments in the company, and uptrend momentum in WMT stock throughout the year indicates that the price might retest the $170 mark soon.  

Technical Levels

• Major resistance: $162.78 and $162.99
• Major support: $136.09 and $138.17

Disclaimer

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